Trump Divestment Rule Could Create Tax Benefit, Delaying Crypto Bill
The proposed Clarity Act has hit a snag as Senate Democrats push for stricter ethics rules for President Donald Trump. The proposed rule would require Trump to divest from crypto-related businesses, but this move could inadvertently create a tax benefit for the president.
According to sources, the mandatory divestment could allow Trump to defer capital gains taxes on his holdings for years, potentially avoiding millions of dollars in liability. This is because Trump's family has extensive financial interests in digital assets, including memecoins and other crypto ventures.
The Clarity Act aims to establish a federal framework for cryptocurrency markets and define how financial regulators divide authority over digital assets. However, Republican support has weakened around other sections of the bill, particularly regarding deposit flight and stablecoin yield provisions.