The French National Assembly has taken a highly controversial step within the digital asset community by voting to adopt Amendment I-3898 during discussions on the 2027 budget bill on October 17, 2026.
If officially enacted into law, this proposal would impose a flat capital gains tax of up to 31.4% each time an investor swaps cryptocurrency for fiat-pegged stablecoins, completely ending the tax deferral mechanism that has been applied for years.
Narrow vote margin and lawmakers’ rationale
The vote took place with an extremely tight margin: 38 votes in favor and 37 against, along with 25 abstentions. Notably, only 100 out of a total of 577 lawmakers participated in the vote.
The amendment was submitted by MP Nicolas Sansu and had previously been approved by the Finance Committee the preceding week. Supporting lawmakers argue that stablecoins now fully serve as a means of payment and a store of value similar to conventional currencies. Allowing tax-free swaps between tokens is viewed as a legal loophole depriving the state budget of substantial revenue. A report by analytics firm Chainalysis previously estimated that up to 90% of cryptocurrency profits in France were not fully declared, with only around 24,000 taxpayers proactively reporting nearly $427 million in gains in 2024.
Potential impact and the legislative path ahead
If implemented, the new regulation would fundamentally alter the trading habits of investors in France. Instead of taking safe harbor in stablecoins to preserve capital during periods of high market volatility, users would immediately face capital gains tax at the moment of the swap, even without withdrawing cash to a bank account.
Analysts warn this move could drive capital flows and professional traders away from domestic platforms toward less restrictive offshore markets, or encourage shifting assets into alternative vehicles such as gold-pegged tokens.
Even so, this proposal is not yet enforceable law. The draft budget must still advance to the Senate for further debate next week. The French government currently maintains a stance opposing this measure and holds full authority to strike the amendment before the final budget legislation is enacted. In a scenario where it passes intact without modifications, the stablecoin taxation rule is expected to take effect starting January 1, 2027.