French Committee Backs Stablecoin Swap Tax and Crypto Exit Tax, Then Rejects the Budget

The legislative measures, which advanced through the committee stage this week, seek to redefine how digital assets interact with France’s tax code. However, their immediate future remains uncertain. Following the committee votes, the panel rejected the entire revenue section of the upcoming budget by a vote of 31 to 3. Consequently, when the full National Assembly opens its floor debate, it will start directly from the government’s original text, which does not include the newly approved crypto amendments.

Because the committee changes do not automatically carry over to the primary text, their original backers would need to formally table the amendments again for the floor debate. Neither measure has been enacted into law, and both must still navigate a complex legislative process before any changes take effect.

Closing the Stablecoin Loophole

The stablecoin amendment was filed by Nicolas Sansu, a lawmaker representing the left-wing GDR group, alongside 16 co-signers. The proposal targets what its authors describe as a legislative blind spot in the current tax framework. Under present French law, swapping one cryptocurrency—such as Bitcoin—for a stablecoin does not trigger a taxable event. The French state traditionally collects capital gains taxes only when digital assets are converted back into fiat currency, such as regular euros or dollars, or when they are used directly to purchase goods and services.

The proposed amendment applies to electronic money tokens defined under the European Union’s Markets in Crypto-Assets (MiCA) regulation, a comprehensive crypto rulebook designed to govern digital assets across member states. This category encompasses the vast majority of stablecoins pegged to a single official currency. Under the text of the amendment, any crypto-to-stablecoin swap executed from January 1, 2027, onward would be legally classified as a sale. The resulting capital gain would be measured against the original purchase price of the initial asset.

While the amendment does not explicitly propose a new tax rate, it defers to France’s existing flat tax regime. Following the passage of the 2026 social-security financing law, which lifted the social-charge portion of capital gains taxes from 17.2% to 18.6%, France’s flat tax on investment income rose to 31.4% at the start of the year. The authors of the amendment maintain that they are not introducing an additional financial burden on investors, but rather enforcing existing tax laws in a scenario that lawmakers argue was previously overlooked.

Proponents of the measure argue that stablecoins function as conventional investment vehicles. Because holders can use them to purchase other digital tokens or settle transactions with crypto service providers, lawmakers contend that deferring taxation on swaps into these tokens is unjustified, effectively allowing substantial investment gains to escape the standard flat tax.

Extending France’s Exit Tax to Digital Assets

In addition to the stablecoin rule, Sansu filed a second amendment designed to extend France’s traditional exit tax to the cryptocurrency sector. An exit tax is a levy applied to unrealized capital gains—gains on assets that have not yet been sold or cashed out—triggered when a taxpayer decides to transfer their official tax residence to another country.

If ultimately enacted, the crypto exit tax would apply to any tax household holding a combined cryptocurrency portfolio valued at more than €800,000. This threshold would apply to assets held directly as well as those managed through custodians. To qualify for the tax, the individual must have been classified as a French tax resident for at least six of the preceding ten years, with the rules slated to take effect for relocations occurring from January 1, 2027. The proposed monetary threshold mirrors the criteria already enforced for traditional corporate shares, and the associated payment deferral rules are similarly borrowed from France’s existing stock market tax regime.

The proposal clarifies that direct swaps between different cryptocurrencies that do not involve any cash component would not be counted as sales for the purposes of the exit tax. However, departing taxpayers would be required to submit a comprehensive statement detailing all cryptocurrency held on the exact date of their relocation. This requirement would extend to assets held abroad or managed through self-custody—such as hardware or software wallets controlled entirely by the individual without the intermediation of a centralized exchange.

Supporters of the exit tax amendment argue that digital assets held directly currently evade the exit rules that apply to traditional equities of equivalent value. Furthermore, lawmakers highlighted the inherent portability of digital assets, noting how easily they can be transferred across international borders compared to traditional financial instruments.

Reforming Loss Carried-Forward Rules

Alongside the stablecoin and exit tax proposals, the finance committee also approved a separate measure introduced by lawmaker Daniel Labaronne. This amendment addresses how investors handle financial losses within the digital asset market, bringing crypto treatment closer in line with traditional equities.

Under the current legal framework, unused crypto losses cannot be carried forward to offset future gains. Labaronne’s amendment would allow investors to carry their cryptocurrency losses forward for a period of up to 10 years, enabling them to offset future tax liabilities against past downturns—a mechanism already available to stock market investors in France.

These latest developments build on a broader legislative trend regarding digital asset taxation in the country. In late October 2025, the National Assembly adopted another crypto-inclusive tax during a first-reading vote. Lawmakers voted 163 to 150 in favor of an amendment establishing a 1% annual levy on "unproductive" wealth exceeding €2 million, grouping digital assets alongside luxury items like gold and yachts. The inclusion of crypto in such wealth taxes has drawn sharp criticism from industry participants and legal experts. Attorney Burâç Önsal previously told Decrypt that taxing early token holders through such mechanisms was potentially "economically unjust."

Regulatory Context and Outlook

The debates surrounding French tax policy also intersect with broader European regulatory shifts. In October 2024, major cryptocurrency exchange Coinbase announced plans to delist stablecoins that fail to comply with the European Union’s MiCA framework for European customers by December 30, directing its user base toward compliant alternatives such as USDC and EURC.

The floor debate concerning the revenue section of the French national budget is scheduled to open on October 13, with a formal vote anticipated by October 20. If proponents of the rejected committee amendments choose to reintroduce them during the parliamentary floor sessions and the measures ultimately survive the legislative gauntlet, the proposed stablecoin and exit tax regulations are scheduled to take effect starting January 1, 2027.