Trump's Crypto Ties Spark Ethics Proposal Amid CLARITY Act Gridlock
A bipartisan ethics proposal is being pitched to President Donald Trump as part of a deal to pass the CLARITY Act in Congress. The bill aims to regulate the crypto market, but its passage has been hindered by concerns over Trump's financial ties to the industry.
The proposed addendum would require Trump to divest from crypto-related businesses, which could result in significant tax savings for the president. According to people familiar with the matter, the proposal includes a provision that allows Trump to defer capital gains taxes on any required divestitures, potentially leading to millions of dollars in tax savings.
Trump's annual financial disclosure report revealed $1.4 billion in income from crypto-related ventures last year, including $635 million from royalties related to memecoins such as Official Trump (TRUMP). The Trump family's DeFi platform, World Liberty Financial, generated about $588 million from token sales.
Democratic concerns over Trump's crypto conflicts may be alleviated by the proposed addendum, but it could also become a point of contention. Some Democrats may question whether the president's financial interests are genuinely curbed if he can defer taxes on divestitures.