France's National Assembly adopted an amendment on Friday, October 16, that would bring crypto-to-stablecoin conversions into the scope of capital gains taxation starting January 1, 2027, should the measure survive the remaining stages of the budget process.
The amendment, numbered I-3898, was filed on October 10 by deputy Nicolas Sansu and signed by 16 colleagues from the Gauche démocrate et républicaine group. It had already cleared the finance committee on October 7 before reaching the floor of the Assembly.
Under the text, conversions would be taxed at a flat rate of 31.4%, through a modification of Article 150 VH bis of the general tax code, the provision that governs the taxation of digital asset gains in France. The amendment includes a worked example: converting €10,000 of bitcoin into a stablecoin, with a gain of €4,000 on the position, would generate a tax bill of roughly €1,256.
A narrower scope than it first appears
The measure does not apply to all stablecoins. It targets only tokens that qualify as e-money under the European Union's Markets in Crypto-Assets regulation, such as USDC or EURC. USDT, the market's largest stablecoin by volume, falls outside MiCA's e-money token framework and would therefore sit outside the scope of the new tax, according to analysis relayed by Chainalysis.
Chainalysis has flagged a risk attached to that asymmetry: volumes could migrate toward unregulated channels, undermining the policy's intent if holders simply route conversions through tokens the French tax authority cannot reach under this rule.
Part of a wider package still in motion
The stablecoin amendment is one of several crypto-related measures moving through the budget process in parallel. The Assembly's finance committee has also voted to extend the existing exit tax to cryptocurrency holdings above €800,000. A separate proposal requiring declaration of crypto wallets holding more than €100,000 has not yet come to a vote in session. In an unrelated but notable vote, the Assembly preserved the tax allowance for retirees.
The amendment's path from here involves several more checkpoints. A solemn vote on the first part of the finance bill, covering revenue measures, is scheduled for Tuesday, October 20. The full finance bill will not be examined until November 17. Should it clear the Assembly, the text would then move to the Senate for further debate. The French government has roughly six weeks left to finalise the budget, leaving ample room for the stablecoin provision to be amended, narrowed or dropped before any 2027 start date becomes binding.
