Trump Set To Pocket Millions in Tax Deferrals via CLARITY Act Divestiture Rules

A new ethics provision buried inside the CLARITY Act could allow President Donald Trump to defer millions of dollars in federal capital gains taxes, and it has become the biggest sticking point keeping the crypto market structure bill off the Senate floor.

How the Tax Deferral Clause Became the CLARITY Act’s Political Tripwire

Bloomberg reported on August 6, 2026, that a forced divestiture clause, designed to address Trump’s deep crypto entanglements, may shield him from immediate tax liability on gains tied to his family’s digital asset empire.

The Senate left for its August recess without a vote, and investors are left watching a shrinking legislative window.

Sens. Thom Tillis (R-N.C.) and Ruben Gallego (D-Ariz.) sent the White House ethics language that would require Trump to divest from crypto-related businesses.

The structure of that forced sale is expected to trigger a tax deferral on any gains, a benefit previously available in certain government-related divestitures.

For a president sitting on over $1.4 billion in crypto income, that deferral could amount to tens of millions in deferred tax liability, according to Bloomberg sources.

The ethics package has become central to securing the 60 Democratic votes the CLARITY Act needs to clear the Senate threshold.

Democrats have long demanded stronger conflict-of-interest safeguards, given Trump’s exposure to World Liberty Financial, the TRUMP and MELANIA memecoins, and related entities.

Earlier drafts of the ethics text barred state attorneys general from enforcement and limited action to the Justice Department.

The latest version reportedly expands those enforcement options, but Democrats say talks are still ongoing.

As Sen. Cynthia Lummis confirmed bipartisan CLARITY Act talks were continuing daily as recently as August 5, Republican leaders had hoped to file a cloture motion before the recess. That did not happen.

Sen. Elizabeth Warren, in a thread cited by Bloomberg, tied the $1.4 billion disclosure directly to the need for stronger guardrails, framing the divestiture clause less as a concession and more as a requirement.

Senate Punts to September, What the Delay Means for Crypto Markets

Senate Majority Leader John Thune (R-S.D.) confirmed on August 7 that the CLARITY Act vote will not happen before the August recess.

POLITICO reporter Jordain Carney captured Thune’s statement on X: “Thune just confirmed our scoop that Senate is punting clarity vote until September.

Said they would get it teed up for when they return.” Lawmakers are expected back in mid-September, though attention will quickly shift toward November midterm positioning.

The Senate delay was expected after cloture was not filed over the weekend, narrowing the realistic window for passage before election-year dynamics take hold.

Prediction-market odds for 2026 enactment have dropped sharply in recent weeks. Analysts who flagged the election-politics risk as far back as July 24 now appear well-positioned in their calls.

For institutional investors, the continued delay keeps regulatory uncertainty in play.

Passage of the CLARITY Act would clarify SEC versus CFTC jurisdiction over digital assets, create registration regimes for exchanges and brokers, and reduce enforcement overhang on compliant infrastructure plays.

Until the Senate returns and the ethics language is resolved, that clarity remains out of reach.

For more updates on the U.S. crypto bill, follow our live coverage on CLARITY Act Live Updates.