France’s legislative landscape for digital assets is facing a potential turning point as the National Assembly’s Finance Committee considers a series of aggressive tax amendments that could reshape how investors interact with stablecoins and exit the country. While these proposals have generated significant discussion within the crypto community, their path to becoming law remains precarious, complicated by the broader volatility of the French government’s budgetary process.
New Proposals Target Stablecoins and Expatriate Wealth
The Finance Committee recently deliberated on amendments that would fundamentally alter the taxation of digital assets. Among the most notable proposals is a measure to tax crypto holders who swap their volatile assets into stablecoins—tokens pegged to fiat currencies like the U.S. dollar or the euro. Under current French law, the government typically only triggers a taxable event when crypto gains are converted into "regular" fiat currency or used to purchase goods and services.
Proponents of the amendment, led by Nicolas Sansu of the left-wing GDR group and supported by 16 co-signers, argue that the current regulatory framework contains a significant "hole" that allows investors to defer tax liabilities indefinitely. By reclassifying the conversion of crypto into stablecoins as a taxable event, the government seeks to ensure that gains are realized and taxed at the standard flat-tax rate. As of January 1, 2026, this rate stands at 31.4%, following a legislative increase in the social-charge component of the levy.
The proposed scope is broad, covering electronic money tokens as defined by the European Union’s Markets in Crypto-Assets (MiCA) regulation. Since most major stablecoins fall under this classification, the measure would effectively end the tax-neutral status of these assets. Supporters contend that because stablecoins function as versatile investment vehicles—capable of being used for further trading or purchasing services at various crypto platforms—the current exemption is an unjustified loophole that allows capital gains to escape taxation.
In addition to the stablecoin tax, the committee also examined a proposal to extend France’s "exit tax" to include crypto assets. Historically reserved for traditional equities and financial holdings, the exit tax is designed to prevent wealthy individuals from moving their tax residence abroad to avoid capital gains liabilities on accrued, unrealized wealth.
Under this proposal, the levy would apply to households with combined crypto holdings exceeding €800,000, provided the taxpayer has been a French tax resident for at least six of the previous ten years. The framework for this tax would mirror the existing rules applied to stock portfolios, including provisions for payment deferrals. If enacted, the rule would apply to moves occurring from January 1, 2027, and would require taxpayers to provide a comprehensive disclosure of all digital assets, including those held in self-custody wallets or on international exchanges.
Legislative Hurdles and Budgetary Uncertainty
Despite the committee’s initial vote, these amendments face an uncertain future. On Friday, the Finance Committee voted 31 to 3 to reject the entire revenue section of the government’s proposed budget. This procedural defeat means that the version of the budget currently heading to the full National Assembly for floor debate starting October 13 is the government’s original, unamended text.
Because the committee’s amendments were not incorporated into the primary draft, their backers must reintroduce them for consideration during the upcoming plenary sessions. Even if the amendments are successfully tabled again, they must navigate a complex legislative journey, including potential debates in the Senate and final votes before they can be signed into law. Consequently, as of mid-October, none of the proposed measures carry the force of law.
The legislative process is further complicated by the broader political climate in France. This is not the first time crypto-related taxation has appeared on the floor of the Assembly. In late October 2025, legislators voted 163-150 in favor of an amendment to introduce a 1% annual levy on "unproductive" wealth exceeding €2 million, a category that explicitly included digital assets alongside more traditional luxury holdings like yachts and gold. The inclusion of crypto in such wealth-tax proposals has drawn sharp criticism from industry experts, with some attorneys and analysts arguing that taxing early-stage token holders or long-term investors in this manner is economically unjust and may stifle innovation within the French blockchain sector.
Balancing Regulation and Market Reality
The discussions in the National Assembly are occurring against the backdrop of the European Union’s rigorous MiCA implementation. As European markets adapt to these new standards, major players are already preemptively adjusting their operations. For instance, Coinbase announced in October 2024 that it would delist stablecoins that failed to meet the stringent requirements of the MiCA framework, directing European customers toward compliant alternatives such as USDC and EURC. This ongoing shift toward institutional compliance is the environment in which French lawmakers are now attempting to graft new fiscal policies.
Amid the proposals for stricter taxation, there have been some potential concessions for investors. A separate amendment, championed by Daniel Labaronne, received committee approval to allow investors to carry forward crypto losses for up to 10 years to offset future gains. This would bring the tax treatment of digital assets closer to the regime currently enjoyed by stock market investors, who are already permitted to utilize such carry-forward mechanisms.
The rationale for this move is to create a more balanced tax environment where the state shares in both the gains and the losses of the market, rather than focusing solely on revenue generation during bull cycles. Whether this provision survives the full parliamentary debate remains to be seen, as it is tied to the same turbulent budgetary process as the more restrictive tax measures.
The Road Ahead
As the October 13 opening of the floor debate approaches, the crypto industry and tax professionals in France remain in a state of watchful waiting. The scheduled formal vote on the revenue section of the budget is set for October 20. Should the proponents of the stablecoin tax and the exit tax succeed in reintroducing and passing these measures, the new rules are slated to take effect from January 1, 2027.
The debate underscores a fundamental tension in modern European governance: the desire to integrate decentralized digital assets into traditional fiscal structures versus the risk of creating an environment that is less attractive to investors and developers. For now, the "hole in the legislation" that lawmakers identified remains open, and the status of crypto assets within the French tax code is subject to the unfolding political drama of the current budget cycle. With the government’s original text currently serving as the starting point for debate, the final shape of these regulations will be determined by the compromises and alliances formed on the floor of the Assembly in the coming weeks.