Ethics Proposal Could Save Trump Millions in Taxes on Crypto Businesses
Vexoda Newsroom
A bipartisan ethics proposal for President Donald Trump's crypto ventures could allow him to defer capital gains taxes, potentially saving millions. The deal aims to resolve legislative obstacles but
In a recent development, a proposed bipartisan ethics agreement aimed at resolving legal and financial conflicts surrounding US President Donald Trump’s involvement in the cryptocurrency market has emerged. This proposal includes provisions requiring Trump to divest his crypto-related businesses while allowing him to defer capital gains taxes on any required sales.
According to Bloomberg's report, this deal could provide significant tax benefits for Trump, potentially saving millions of dollars. The ethics addendum is part of efforts by US Senators to pass the CLARITY Act, a bill that aims to regulate and structure the crypto market more effectively. However, Democrats have raised concerns about whether these provisions genuinely address financial conflicts of interest.
Trump’s 2025 annual financial disclosure report revealed substantial income from his crypto ventures, with $1.4 billion generated in total. The largest source was royalties from a license agreement for memecoins like Official Trump (TRUMP), generating around $635 million. His DeFi platform, World Liberty Financial, contributed another significant portion of the earnings at approximately $588 million.
The proposal has not been made public and is currently under negotiation between lawmakers. While it aims to break legislative impasses by addressing Democratic concerns over financial conflicts, the potential tax deferral benefit could become a contentious issue for Democrats, questioning whether Trump's interests are genuinely curbed.
This deal highlights the ongoing challenges in regulating crypto markets while accommodating significant players like former President Donald Trump. It underscores the need for clear and transparent regulations that address both economic benefits and ethical considerations.
Traders should monitor how this proposal progresses through Congress and its potential impact on broader regulatory frameworks. Additionally, they should stay informed about further developments regarding the CLARITY Act and any related legislative actions.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.