The requirements for passing the CLARITY Act have introduced a new political maneuver. A bipartisan ethics proposal offered to President Trump requires him to divest all of his crypto business holdings. However, this proposal includes a compromise in the form of a capital gains tax deferral clause accompanying the forced divestment.
According to sources familiar with the negotiations, the draft of this ethics proposal has not yet been made public. If this agreement is signed, Trump must exit the crypto industry. However, the clause within it allows the president to defer tax obligations on the gains from selling his assets. This tax deferral facility could potentially save millions of dollars of his personal wealth from government bills.
A $1.4 Billion Portfolio Awaiting Divestment
This divestment obligation involves a massive amount of money. Trump’s annual financial disclosure for 2025, released in late June, revealed $1.4 billion in earnings flowing from crypto ventures. The 927-page document details exactly where this digital wealth originated.
The largest contributor comes from royalty flows. Around $635 million was pocketed by Trump from licensing the Official Trump (TRUMP) memecoin, distributed through an entity named Celebration Coins. On the other hand, the Trump family’s DeFi platform, World Liberty Financial, also generated $588 million in revenue from token sales. The family’s control over this project is maintained through the entity DT Marks DEFI LLC, which holds a 38% equity stake in the platform’s parent company.
In addition to those two main drivers, the financial report also recorded a figure of $197 stemming from the sale of shares in a stablecoin business. These figures show how large the profit margins generated are, as well as how much tax could potentially be deferred when this divestment is executed.
Questions Regarding Financial Benefit Limits
For Democratic lawmakers, this tax deferral clause creates a worrying loophole. The original intent behind drafting this ethics proposal was to ensure that the president’s financial interests are limited and do not conflict with national policies.
The million-dollar deferral facility changes the direction of the agreement. This deferral clause could potentially become a new point of contention between the two sides, while also raising critical questions: whether this deal truly limits the president’s conflicts of interest, or merely helps him secure sales proceeds from current tax obligations.
As reported by Cointelegraph.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
