Narrow Vote Advances Stablecoin Rule

France’s National Assembly approved an amendment that would make crypto-to-stablecoin conversions taxable starting in 2027. The measure, Amendment I-3898, passed 38 votes in favor against 37 opposed, with 25 abstentions. It was first introduced by MP Nicolas Sansu and had already cleared a committee on October 7.

The change closes a current tax deferral on intra-crypto activity. Under existing rules, swaps between digital assets do not trigger immediate capital gains tax unless the proceeds move to fiat currency. The new rule treats certain stablecoin acquisitions as taxable events in their own right.

The assembly is scheduled to vote on the first part of the 2027 Finance Bill on October 20. The amendment itself is not yet law and could still face amendments or rejection during the full chamber debate or in the Senate. If it survives, it would apply from January 1, 2027.

How the Tax Change Would Work

Under the proposal, converting cryptocurrencies such as Bitcoin into stablecoins would generate a taxable gain at the moment of the swap. The gain is calculated as sale proceeds minus the original acquisition cost of the crypto asset sold. For tokens of the same kind bought at different prices, lawmakers would use a weighted-average purchase price method.

The flat tax rate of 31.4 percent, which already applies to most private investor crypto gains, would cover the liability. This rate combines 12.8 percent income tax and 18.6 percent social charges. Investors could choose the progressive income tax scale instead. The existing exemption for yearly sales below 305 euros would remain in place.

The amendment targets MiCA-compliant electronic money tokens that reference one official currency. Non-compliant stablecoins would fall outside its scope, creating a potential distinction based on regulatory status.

Stablecoins Viewed as Investment Vehicles

French lawmakers described stablecoins as investment vehicles rather than simple liquidity tools. The explanatory memo argues that existing tax treatment leaves a legislative gap, since stablecoins are liquid, usable for payments, and can facilitate further crypto activity without passing through traditional banking channels.

By taxing the swap itself, the measure aims to ensure that activity within the crypto ecosystem is properly tracked and taxed at the point of movement. This approach aligns with the logic that stablecoins function similarly to cash equivalents in some respects.

Separate Proposals on Wallets and Exit Tax

While advancing the stablecoin rule, lawmakers rejected a separate proposal to carry forward realized crypto losses for 10 years. That measure received only 18 votes in favor against 75 opposed, with three abstentions.

Two other crypto-related items remain under review for the 2027 Finance Bill. Amendment I-CF1822 would extend France’s exit tax regime to unrealized gains for taxpayers moving their residence abroad whose total crypto portfolio exceeds 800,000 euros. Amendment I-2701 would require individuals to declare self-custodial wallet holdings above 100,000 euros in value for the relevant tax year.

Broader European Pattern

The French amendment references precedents in the United Kingdom and Italy, where crypto-to-stablecoin conversions are already treated as taxable events. As stablecoins gain mainstream use and regulatory clarity under MiCA, several European jurisdictions are tightening rules on movements within the crypto space.

France’s move does not single out crypto maximalists or large institutions. It applies across private investors and traders, including those using stablecoins for risk management, treasury operations, or liquidity needs. The result could affect how founders and operators plan capital preservation strategies in the region.

Public accounts minister David Amiel had asked lawmakers to withdraw the amendment, citing complexity in applying the rules and tracking reallocations across portfolios. Despite those concerns, the assembly proceeded with the measure.

What This Means for Investors and Founders

Early-stage Web3 companies and individual holders who convert crypto holdings into stablecoins for protection against volatility would face new tax obligations under the proposed rule. The taxable event occurs at the swap, regardless of whether the stablecoin later moves to fiat.

Recordkeeping requirements would also become more involved, as gains must be calculated using acquisition costs and weighted averages rather than portfolio-wide methods. This shift affects day-to-day trading, liquidity provision, and treasury management strategies alike.

Other proposals on exit tax and self-custody reporting add further layers of compliance. Wealthy holders relocating or operating large self-custody wallets would need to prepare for potential new declarations and tax triggers.

The 2027 Finance Bill process continues, with the October 20 vote on its initial section setting the next milestone. The stablecoin amendment’s survival will determine whether the 31.4 percent rate applies to on-chain movements beginning next year.