Trump Could Avoid Billions in Taxes if Forced to Sell Crypto Holdings

A bipartisan crypto bill under discussion in Congress includes an ethics provision that could deliver a major tax break to President Donald Trump, Bloomberg reported on August 6.

A draft provision proposed by senators would require Trump to divest assets tied to crypto businesses, according to people familiar with the matter. If such a forced sale occurs, Trump could defer federal capital-gains taxes on the profits for years and, in some cases, permanently, the people said.

Under current tax law, taxes on gains from a forced sale can be deferred if the proceeds are reinvested in new investment assets. If Trump holds those replacement assets until his death, the tax on those gains may never be imposed. Trump reported $1.4 billion in income from crypto- and memecoin-related businesses in 2025. Without the ethics provision, he would have to immediately pay the 20% federal capital-gains tax on the difference between the purchase price and the sale price when the assets are sold.

The provision was drafted jointly by Republican Senator Thom Tillis of North Carolina and Democratic Senator Ruben Gallego of Arizona. The draft has not been made public, and negotiations between the White House and Congress are continuing.

The measure is a central part of a bipartisan deal to advance the long-stalled Clarity Act, legislation to regulate the crypto industry. Republican leaders, including Senate Majority Leader John Thune, are seeking a procedural vote before the Senate begins its August recess in the coming days.

Trump is a major investor in World Liberty Financial, and DT Marks DEFI LLC, a Trump-affiliated entity, owns a 38% stake. Unlike other senior officials, Trump is not required to divest assets while in office. Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent have already used special tax provisions available to senior government officials to defer capital-gains taxes when selling assets.