Progress was made on October 16 when lawmakers approved a MiCA e-money proposal for 2027.
Approval was given by French lawmakers on Oct. 16 for a tax on specific stablecoin swap gains, though they turned down a ten-year crypto loss carryforward. Together, these moves accelerate taxable events for qualifying trades while offering no extra relief for past net losses.
Amendment I-3898 was adopted by the National Assembly in a 38-to-37 vote, alongside 25 abstentions, during the 2027 budget bill’s first reading. Lawmakers later defeated I-3653 by a wide 75-to-18 margin, with three members abstaining.
Confirmation was given in an Oct. 19 draft that the budget stays in its initial reading, keeping the stablecoin clause under Article 4 octies. Lawmakers plan to enforce it on Jan. 1, 2027, provided the bill formally passes into law.
Stablecoin Transactions May Trigger Tax Before Cash-Out
A deferral is granted under current French rules for retail investors trading crypto for crypto without cash payouts. This approach allows holders to adjust their portfolios without triggering immediate tax obligations in the year of the trade.
Exceptions were added under I-3898 to end that deferral whenever investors acquire MiCA e-money tokens or similar rights. Under the EU’s Markets in Crypto-Assets framework, these e-money tokens target a steady value pegged directly to an official currency.
A tax liability was generated for investors swapping appreciated Bitcoin or Ethereum into qualifying tokens to limit market exposure, even though funds stay in crypto. The swap itself serves as the taxable trigger, regardless of whether any euros hit a bank account.
An assessment was outlined for profits exceeding initial purchase costs, after factoring in documented transaction fees. Acquisition cost reflects the total value recorded for tax obligations on those assets. This measure swaps portfolio-wide cost calculations for a specific asset basis, relying on a weighted average for identical assets bought at varying prices.
Adjustments were made so taxable trades reset the cost basis of incoming assets, whereas deferred transactions carry existing valuations forward.
Flexibility was granted for pre-2027 assets, allowing investors to apply verified actual expenses or permanently spread their total portfolio cost based on Dec. 31 valuations.
Rejection was dealt to the separate I-3653 proposal, which aimed to let investors roll unused crypto losses forward for ten years. Its failure leaves existing same-year loss offset rules untouched.
Permission is given under current tax guidance for investors to offset crypto losses against same-year gains. However, net losses cannot roll into future tax years or reduce taxable profits from other investment classes.
A barrier was kept in place for past net losses if the stablecoin clause passes without new relief, leaving them unusable against gains from covered swaps. The ultimate budget language will determine if this tax revision officially takes effect.
