France Assembly Adopts Stablecoin Tax Proposal

France’s National Assembly adopted a narrowly supported amendment that would make gains taxable on certain cryptocurrency-to-stablecoin swaps, even when investors do not convert the assets into euros or another fiat currency. The measure is a proposal, not enacted law, and could still change during the remaining 2027 budget process. Amendment I3898 passed on October 16 by 38 votes to 37, with 25 abstentions. Introduced by lawmaker Nicolas Sansu, it would treat the relevant swaps as taxable events, ending the ability to defer tax on gains until a later conversion into fiat. The amendment also proposes calculating gains using a weighted-average purchase cost for the cryptocurrency being exchanged. The Assembly was scheduled to vote on the first part of the 2027 Finance Bill on October 20. That vote is one step in the budget process; the adoption of I3898 alone does not establish that the tax change will take effect. The proposal’s final wording and status depend on the remaining legislative stages. Other cryptocurrency measures remain under consideration. Amendment ICF1822 would extend an exit tax to unrealized cryptocurrency gains for taxpayers moving abroad with portfolios...