French Lawmakers Back Stablecoin Swap Tax by Just One Vote

Introduction

In a tightly contested vote, France’s National Assembly approved amendment I‑3898 to the 2027 budget, making the conversion of cryptocurrencies into EU‑regulated stablecoins a taxable event. The measure passed by a single‑vote margin—38 in favor, 37 against, and 25 abstentions—out of only 100 deputies who participated. While the amendment still faces further parliamentary scrutiny, it signals a notable change in how French authorities will treat stablecoin transactions.

What the amendment changes

• Taxable swaps: From 1 January 2027, any swap that results in an electronic money token (EMT) covered by the EU’s MiCA framework—essentially stablecoins pegged to a single fiat currency—will be treated as a sale for tax purposes.
• Calculation of gains: The taxable gain is the difference between the market value of the stablecoins received and the acquisition cost of the crypto given up. Unlike the current system, which uses a single average cost for an entire portfolio, the amendment requires a per‑coin cost basis, with averaging applied only when the same coin was bought multiple times.
• One‑off cost election: Holders of assets acquired before 2027 must choose, by the end of 2026, whether to record the actual historic cost of each token or to allocate the total portfolio cost across all holdings as of 31 December 2026. This choice is irrevocable.
• Flat tax rate: Gains will be taxed at France’s flat rate, which rose to 31.4 % after the 2026 social‑security financing law increased social charges on capital income.

Political context and opposition

The amendment was championed by left‑wing deputy Nicolas Sansu, who argues that stablecoins function as conventional investment vehicles and should not escape taxation. He points to similar legislation in the United Kingdom and Italy as precedents.

The government, represented by Public Accounts Minister David Amiel, opposed the amendment, citing the lack of a clear legal definition for stablecoins and the need for robust tracing mechanisms within portfolios. The finance committee had already backed the amendment earlier in the month, but the broader budget revenue section was rejected, forcing the stablecoin clause back to the floor for further debate.

Related proposals and industry backlash

A separate amendment under consideration would require holders of self‑custodied crypto assets worth €100,000 or more to declare these holdings annually, with penalties of up to €10,000 for non‑compliance. Crypto industry groups have criticized this proposal, warning that mandatory disclosures could expose owners to security risks in a country that has experienced high‑profile crypto‑related crimes, including the 2025 kidnapping of Ledger co‑founder David Balland.

Both measures remain proposals; they must survive the full revenue vote in the Assembly and subsequent Senate review before becoming law.

Practical implications for investors

1. Record‑keeping will become essential – Investors will need detailed transaction histories to calculate per‑coin gains accurately. Tools that track acquisition costs on a token‑by‑token basis will be increasingly valuable.
2. Potential tax planning opportunities – The one‑off cost election allows investors to choose the method that minimizes tax liability for pre‑2027 holdings. Consulting a tax professional before the 2026 deadline will be crucial.
3. Impact on stablecoin usage – While stablecoins remain popular for liquidity and cross‑border payments, the new tax could deter frequent swapping unless users factor the tax cost into their strategies.
4. Compliance risk – The separate reporting amendment, if enacted, would impose additional compliance burdens on high‑value holders, reinforcing the need for transparent custodial solutions.

Looking ahead

The amendment’s narrow passage underscores the contentious nature of crypto taxation in France. As the budget proceeds through the Senate, stakeholders will be watching for any amendments that could dilute or strengthen the tax provisions. Should the measure become law, France will join a growing list of jurisdictions treating stablecoin conversions as taxable events, potentially influencing broader EU policy discussions on crypto taxation.

--- This article provides an overview of the legislative development and its implications for crypto investors in France. It does not constitute tax advice; readers should consult qualified professionals for personalized guidance.