Proposed CLARITY addendum could defer Trump’s crypto taxes

A bipartisan ethics addendum pitched as part of the CLARITY crypto market-structure bill would require President Donald Trump to divest crypto-related holdings and permit him to defer capital gains taxes on any forced sales, people familiar with the proposal provided details. The tax-deferral feature could reduce the president’s immediate tax bills by millions, depending on the size and timing of the divestitures.

Allowing deferral would delay recognition of capital gains until the deferred assets are sold, transferred or otherwise recognized under tax law. The timing of future transactions and any changes in tax policy would determine when taxes are ultimately owed and how much would be due.

Trump’s 2025 annual financial disclosure, filed in late June, shows about $1.4 billion in income from crypto-related ventures for the prior year. The 927-page filing lists roughly $635 million in royalties from a licensing agreement for a memecoin branded Official Trump with Celebration Coins, about $588 million in proceeds from token sales tied to the Trump family’s DeFi platform World Liberty Financial, and $197 from the sale of an equity interest in a stablecoin venture. Corporate filings show DT Marks DEFI LLC, an entity affiliated with Trump and some family members, holds about 38% of the equity in World Liberty’s parent company.

Democratic lawmakers have raised concerns about conflicts of interest tied to the president’s crypto ties and have sought enforceable limits on financial relationships as a condition for supporting the market-structure bill. Negotiators are discussing whether a tax-deferral provision would adequately limit financial incentives or leave significant benefits for the president.

Senators continue to negotiate the ethics language as they seek enough votes to move the broader CLARITY bill toward a vote. The White House did not respond to requests for comment.