A bipartisan ethics provision could compel President Donald Trump to sell his cryptocurrency holdings, including the TRUMP and MELANIA memecoins launched days before his inauguration, according to a Bloomberg report and a tweet by Matthew Sigel. The ethics language, added to the broader Clarity Act — the first comprehensive federal crypto regulation — is now critical to passing the bill. Trump is reviewing the provision, which could allow him to defer millions of dollars in federal taxes on any gains from the divestiture, potentially eliminating the tax liability entirely.
Sens. Thom Tillis (R-N.C.) and Ruben Gallego (D-Ariz.) sent the ethics language to Trump last week. It would require him to divest from crypto-related businesses, including his family’s World Liberty Financial venture. The latest version grants enforcement authority to state attorneys general, a shift from an earlier draft that gave exclusive power to the Justice Department under a presidential appointee. This change addresses demands from some senators for stronger oversight.
The Senate faces a narrow window to advance the Clarity Act before a month-long recess starting Friday, after which attention will turn to November elections. Senate Majority Leader John Thune has not yet filed a cloture vote, and Republican support is wavering — Sens. Josh Hawley, Susan Collins, and Lisa Murkowski have voiced concerns over other bill provisions. The bill needs 60 votes, requiring Democratic backing, and if passed, it would return to the House before reaching Trump’s desk.
Market participants are closely watching the ethics plan, as it underscores growing regulatory scrutiny of digital assets among political figures. While broader crypto markets show mixed momentum, the potential divestiture could influence sentiment, especially among politically linked tokens.
