CLARITY Act Ethics Deal Could Force Trump To Sell Crypto Holdings

President Donald Trump may have to sell off his crypto holdings as lawmakers work out final amendments to the CLARITY Act, according to reports.

CLARITY Act Ethics Provision Targets Trump’s Crypto Holdings

The draft ethics provisions, which has not yet been made public, is said to mandate that the president sell off crypto business ventures. This could be a big tax event as the sale of the assets would be subject to capital gains tax.

The idea also has the potential to offer a tax advantage, though, as it would prevent Trump from paying capital gains taxes on some of his crypto investments, per a Bloomberg report. The deal is said to be a potential tax break as part of the divestment deal.

The White House and senators are negotiating the ethics language in the crypto market structure bill, the CLARITY Act. It is seeking to clarify how digital assets will be regulated.

What’s The Controversy All About?

Democrats in the Senate had wanted tougher ethics rules but approved them anyway, wanting to guard against possible conflicts of interest between public servants and crypto businesses.

Trump’s income from cryptocurrencies has come under fire following financial disclosures in June that his family’s digital asset enterprises made over $1.4 billion last year. His crypto holdings and businesses are related to the overall digital asset ecosystem.

CLARITY Act talks have encompassed topics of regulatory control, consumer safeguards and ethics mandates. Sen. Thom Tillis made the earlier statement that White House negotiators were starting to look at proposed ethics language with specific language on the agreement being worked through.

The bipartisan ethics proposal is still being discussed and hasn’t been completed or published.

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