Senate Ethics Bill May Force Trump Crypto Divestment

A bipartisan ethics proposal tied to landmark cryptocurrency legislation could require President Donald Trump to divest his holdings in crypto-related businesses, but the forced sale may also grant him a substantial tax benefit, according to reports. The provision, part of the long-awaited Clarity Act, is being reviewed by the White House as lawmakers push for a Senate vote before a month-long recess begins on August -7.

The ethics amendment, crafted by Republican Senator Thom Tillis and Democratic Senator Ruben Gallego, would mandate that the president sell his interests in cryptocurrency ventures to address potential conflicts of interest. However, under U.S. tax law, such an involuntary divestiture could allow Trump to defer capital gains taxes indefinitely by reinvesting the proceeds in similar assets. In some scenarios, if the assets were held until death, the tax liability could be eliminated entirely due to a step-up in basis.

The potential financial impact is significant given the scale of Trump's reported crypto income. In 2025, he reported more than $1.4 billion in earnings from crypto and memecoin ventures and holds a key stake in World Liberty Financial, a...