Trump Could Face Crypto Sell-Off Under CLARITY Act Ethics Deal

President Donald Trump could be required to divest some of his crypto holdings and business interests as lawmakers negotiate final ethics provisions for the CLARITY Act, according to reports.

The proposed ethics language, which has not yet been publicly released, could require the president to sell interests in cryptocurrency-related ventures. Such a divestment could create significant tax implications because sales of appreciated digital assets would generally be subject to capital gains taxes.

However, the emerging agreement could also provide Trump with a potential tax benefit. According to a Bloomberg report, provisions being considered as part of the divestment arrangement may allow him to avoid capital gains taxes on certain crypto investments. The final details remain under negotiation and have not been officially published.

The White House and senators are currently discussing the ethics provisions as part of broader negotiations over the CLARITY Act. The crypto market structure legislation is designed to establish clearer rules for digital assets in the United States, including the regulatory responsibilities of federal agencies.

Ethics requirements have become a major issue during negotiations. Senate Democrats have pushed for stronger restrictions intended to reduce potential conflicts of interest involving government officials with financial ties to cryptocurrency companies and other digital asset businesses.

Trump's crypto interests have faced increased scrutiny following financial disclosures involving his family's digital asset ventures. Reports based on those disclosures have raised questions about the scale of income connected to cryptocurrency businesses and whether those interests could create conflicts while the administration shapes US crypto regulation.

Negotiations over the CLARITY Act have also focused on regulatory oversight, consumer protections and enforcement requirements. Sen. Thom Tillis previously indicated that White House negotiators had begun considering proposed ethics language as lawmakers worked toward an agreement.

For now, the bipartisan crypto ethics proposal remains unfinished. Until lawmakers release the final language, it is unclear exactly which Trump crypto holdings or ventures could be affected, whether divestment would be mandatory, or what tax treatment would apply.

The outcome could become an important part of the broader debate over the CLARITY Act and the future of cryptocurrency regulation in the United States.