French lawmakers voted on October 16 to approve a proposal that would tax gains on certain cryptocurrency swaps into stablecoins, rejecting on the same day a companion measure that would have allowed crypto losses to be carried forward for ten years. The votes took place in the National Assembly during the first reading of France's 2027 finance bill. The budget has not yet become law. The stablecoin measure passed by a single vote.

Amendment I-3898, which covers the stablecoin swaps, passed by a margin of 38 votes to 37, with 25 members abstaining. Amendment I-3653, the loss carryforward plan, failed by 75 votes to 18, with three abstentions. The roll-call results are published in the National Assembly's public scrutiny record.

How the Stablecoin Swap Rule Would Work

Under current French rules, private investors who exchange one crypto asset for another without receiving a cash payment benefit from a tax deferral. This allows them to reorganize their holdings without paying tax on gains in that year.

The approved amendment would remove that deferral when the investor receives e-money tokens under MiCA, the European Union's Markets in Crypto-Assets regulation. MiCA defines e-money tokens as crypto assets designed to maintain a stable value against an official currency, such as the euro or the US dollar. The framework was phased in across the EU in 2024 and established a common regulatory rulebook for crypto assets. The regulation splits stablecoins into two categories — e-money tokens, which reference a single official currency, and asset-referenced tokens, which reference other assets or a basket of currencies — and the deferral removal is tied to the e-money token category. Stablecoin rules were also the first part of MiCA to take effect, applying from June 30, 2024, ahead of the framework's remaining provisions at the end of that year.

In practice, an investor who converts Bitcoin or Ethereum that has appreciated into a qualifying stablecoin could owe tax on that gain. The liability would arise even though the proceeds remain in crypto and no euros reach a bank account. The tax would apply to the gain above the acquisition cost — the amount recognized as the assets' cost for tax purposes — with documented fees taken into account.

The proposal would also change how costs are calculated. Instead of spreading cost across an entire portfolio, the rule would apply a basis to the assets sold, using a weighted average cost for identical assets purchased at different prices. A taxable swap would reset the cost basis of the newly acquired assets, while a deferred swap would carry the old basis forward.

For holdings bought before 7, investors could rely on their documented actual costs. They could also make a permanent election to spread existing portfolio cost across all holdings based on their December 31 values.

Loss Carryforward Proposal Rejected

The rejected I-3653 amendment would have allowed unused crypto losses to be carried forward for up to ten years. Under current tax guidance, crypto losses can offset crypto gains only within the same tax year. A net loss cannot be carried into later years or set against gains from other types of assets. Same-year offsets remain available under the existing rules.

If the stablecoin rule stays in place without a separate loss reform, investors would be unable to use net crypto losses from earlier years against gains from covered swaps.

Market Context and Legislative Path

Bitcoin traded at about $81,333 at the time of reporting, down 1.83% over 24 hours, while Ethereum changed hands near $2,381, down 2.33%.

The budget remains at the first-reading stage. Under France's legislative process, a finance bill still faces consideration by the Senate and potentially further readings before final adoption, and provisions can be amended, replaced, or dropped along the way; measures rejected at this stage can also be reintroduced as new amendments. The one-vote margin on the stablecoin amendment leaves its fate open as the bill moves through those stages. A provisional text dated October 19 keeps the stablecoin provision in Article 4 octies — the article of France's General Tax Code that covers how digital asset gains are taxed — with a proposed start date of January 1, 2027 that depends on the measure becoming law.

Source: Blockonomi