CLARITY Ethics Deal Could Let Trump Defer Millions in Taxes
The CLARITY Act would divide oversight of digital assets between the Commodity Futures Trading Commission and the Securities and Exchange Commission. The House passed its version 294-134 on July 17, 2025, but the Senate needs 60 votes to advance it. Ethics restrictions became pivotal after an Office of Government Ethics filing released June 30, 2026 showed Trump earned at least $1.4 billion from crypto ventures in 2025, including about $594 million from World Liberty Financial and $636 million from his memecoin business.
Bloomberg reported on Aug. 7, 2026 that Trump was reviewing details of a bipartisan ethics proposal tied to the bill. The draft could require him to divest specified crypto holdings while allowing those sales to qualify for a Certificate of Divestiture under Section 1043 of the Internal Revenue Code. If proceeds are reinvested within 60 days in US government obligations or approved diversified funds, capital-gains tax can be deferred, potentially postponing millions of dollars in tax. The arrangement remains under negotiation, and the precise benefit has not been disclosed.
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The history behind this eventTrump Accepts Ethics Curbs as Crypto Bill Nears Senate Vote
The Digital Asset Market Clarity Act would create the first comprehensive U.S. federal framework for crypto markets, dividing oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission. The House passed an earlier version 294-134 on July 17, 2025. In the Senate, however, ethics became a central obstacle after Trump's disclosures showed more than $1.4 billion in crypto-related income in 2025, intensifying scrutiny of World Liberty Financial and other family-linked ventures.
Trump agreed on July 20 to accept an ethics provision, and Senate Republicans circulated draft text on July 22. It would temporarily bar the president, vice president, members of Congress and federal judges from issuing or sponsoring cryptocurrencies, with Justice Department enforcement, a maximum $500,000 civil penalty and a sunset at the start of 2029. Democrats still want state attorneys general empowered to act. The bill needs 60 Senate votes, while Majority Leader John Thune said passage before the August 7 recess was unlikely.
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