French MPs Back Tax on Stablecoin Swaps, Reject 10-Year Crypto Loss Carryforward
France's National Assembly backs taxing stablecoin swaps
On October 16, French MPs voted to tax gains when crypto holders swap assets into certain stablecoins. Stablecoins are digital tokens designed to keep a steady value, usually tied to a single government currency.
The measure, known as amendment I-3898, passed by 38 votes to 37, with 25 abstentions, during the first reading of the 2027 finance bill. A separate proposal to let crypto losses be carried forward for ten years was rejected.
The budget is still in first reading. The proposed start date of January 1, 2027 depends on the measure becoming law.
How the two votes split
- The National Assembly adopted amendment I-3898 by 38 to 37, with 25 abstentions.
- MPs rejected amendment I-3653, which would have allowed unused crypto losses to carry forward for ten years, by 75 to 18, with three abstentions.
- A provisional text dated October 19 keeps the stablecoin provision in Article 4 octies.
What the stablecoin swap change would do
Under current French rules for private investors, crypto-to-crypto exchanges without a cash balancing payment receive tax deferral. That means a holder can change crypto exposure without necessarily recognizing a taxable gain in the year of the exchange.
I-3898 would remove that deferral when the holder receives MiCA e-money tokens or related rights. MiCA, the EU's Markets in Crypto-Assets regulation, defines e-money tokens as crypto assets that seek stable value by reference to one official currency.
For a holder moving an asset that has risen in value, such as Bitcoin or Ethereum, into a qualifying token to reduce market exposure, a gain could become taxable even if no euros reach a bank account. The taxable event would be the covered swap itself.
The calculation would cover the gain above acquisition cost, with documented fees accounted for. Acquisition cost is the amount recognized as the assets' cost for tax purposes. The proposal would replace portfolio-wide cost allocation with a basis for disposed assets, using weighted-average acquisition cost for same-kind assets bought at different prices.
Taxable swaps would reset the acquisition basis of the received assets, while deferred swaps would carry the basis forward. For holdings from before 2027, investors could use documented actual costs or irrevocably allocate existing portfolio acquisition cost across all holdings by their December 31 values.
What the rejected proposal would have changed
The separate I-3653 proposal would have allowed unused qualifying crypto losses to be carried forward for ten years. Its defeat leaves the existing same-year offsets in place.
Current tax-authority guidance allows crypto losses to offset crypto gains in the same tax year. A net loss cannot carry into later years or offset gains on other asset categories.
If the stablecoin provision survives without another loss reform, net crypto losses from earlier years would remain unavailable against gains recognized on covered swaps.
What is confirmed
The vote counts, the date of the votes, the amendments involved, and the provisional text retaining Article 4 octies are recorded in the National Assembly documents cited by the source. The current deferral rule for covered crypto-to-crypto exchanges and the limits on loss offsets come from French legal and tax-authority guidance.
What is still unclear
The final budget text will determine whether the tax change takes effect. The January 1, 2027 application date is proposed, not yet in force, since it depends on enactment.
Why it matters
If enacted, the change would move the tax point earlier for covered swaps into qualifying stablecoins. A gain could be taxed at the moment of the swap, even when the value stays in crypto. At the same time, the rejection of the loss carryforward means losses from earlier years would not be available to offset those gains. The source states the paired decisions would bring tax recognition forward without adding relief for net losses from earlier years.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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