Trump Could Defer Millions in Crypto Taxes Under Senate Ethics Proposal
Updated
Updated · Bloomberg · Aug 7
Trump Could Defer Millions in Crypto Taxes Under Senate Ethics Proposal
3 articles · Updated · Bloomberg · Aug 7
Summary
A bipartisan Senate ethics proposal tied to pending crypto legislation could let Donald Trump defer millions of dollars in capital gains taxes on his crypto holdings.
The draft addendum would require the president to divest from crypto-related businesses, and people familiar with the talks said a forced sale could postpone federal tax payments for years, if not indefinitely.
The provision is being negotiated privately between the White House and lawmakers and has not yet been released publicly.
Senators pitched the ethics measure as a way to help secure passage of landmark crypto legislation in Congress, putting Trump's financial interests at the center of the bill's final talks.
What permitted assets must the proceeds from this high-profile crypto divestiture be reinvested into to successfully trigger the tax deferral?
How Trump’s $1.4 Billion Crypto Fortune and Tax Deferral Loopholes Are Stalling the CLARITY Act: Ethics, Policy, and Market Fallout in 2026
Overview
The CLARITY Act’s proposed ethics rules would force President Trump to sell his $1.4 billion crypto holdings, but a special tax provision lets him defer paying the usual 20% capital gains tax. If he reinvests the proceeds and holds them until death, the 'step-up in basis' rule could erase all taxes on these gains. This loophole has triggered controversy and public skepticism, especially as Trump’s net worth soars while retail investors lose billions. Meanwhile, the Act faces a legislative bottleneck, with uncertain prospects as the Senate approaches its August 2026 recess and the crypto market reacts to the ongoing uncertainty.