French National Assembly Rejects Budget Section, Sidelining Crypto Tax Proposals

French lawmakers reject budget revenue section

The French National Assembly has rejected the revenue section of the 2027 state budget. This decision removes several proposed crypto-related tax and reporting rules from the current version of the bill.

The Assembly voted 458–0 against the revenue section on Wednesday. Because the section was rejected, the government will send the original budget text to the Senate. This original text does not include the crypto amendments that lawmakers had previously adopted.

Key takeaways from the budget vote

• The rejection of the revenue section effectively cancels the amendments added during the first reading.
• Three specific crypto-related proposals have fallen away for now.
• Provisions could still be reintroduced when the bill moves to the Senate.

Proposed crypto rules that were removed

Before the budget section was rejected, lawmakers had adopted three amendments targeting the crypto industry. One amendment proposed making gains from trading crypto for stablecoins taxable. A stablecoin is a digital currency designed to keep a steady value, often by being tied to a traditional currency like the Euro.

Another proposal would have required taxpayers to report self-custodied crypto holdings worth 100,000 euros ($112,000) or more. Self-custody refers to holding digital assets in a private wallet rather than on a professional exchange. A third amendment sought to increase fines for crypto platforms that fail to provide information to tax authorities, raising the penalty from 10,000 euros to 50,000 euros.

Facts about the legislative process

The rejection of the revenue section was unanimous among those who voted, with only two abstentions recorded. Official records show that while the amendments were initially adopted, the failure of the entire revenue section means those changes do not move forward automatically. Experts noted that a total rejection of the revenue section often leads to the removal of all individual amendments adopted during that stage.

Timeline for Senate review

The budget process is not yet finished. The French Senate is scheduled to start debating the finance bill on November 20. Discussions specifically regarding the revenue section are expected to begin on November 23. During this time, the crypto-related amendments could be proposed again for inclusion in the final law.

Sources

• Cointelegraph