Trump's Crypto Holdings Could Save Him Millions in Taxes Under Proposed Ethics Provision

A proposed provision in the CLARITY Act could require President Donald Trump to divest his crypto-related business interests, but doing so might also allow him to defer or avoid millions in federal capital gains taxes.

The ethics provision, introduced by Republican Sen. Thom Tillis and Democratic Sen. Ruben Gallego, aims to address conflicts of interest, but it could inadvertently provide Trump with substantial tax benefits.

Under U.S. tax law, certain involuntary conversions or divestitures can qualify for like-kind exchange treatment or other deferral provisions, potentially shielding a significant portion of the gains from immediate taxation.