Proposed ethics add-on could let Trump defer taxes on crypto assets

Senators Thom Tillis and Ruben Gallego have drafted an ethics addendum to a pending crypto bill that would obligate President Trump to divest from crypto-related businesses. Under the proposal, the sale would enable Trump to defer capital-gains tax on the proceeds, possibly yielding millions in tax savings, especially since he reported $1.4 billion in crypto earnings in 2025. The deferral could last indefinitely, with gains remaining untaxed if the new investments are held until death.

The amendment also gives state attorneys general the authority to sue to enforce the divestiture if the Justice Department declines to act. While the White House and the senators’ offices have not responded, the provision is seen as crucial to unlocking a bipartisan deal for the Clarity Act, which industry groups have long championed. Senate leaders are pushing for a procedural vote before the upcoming August recess.