French Assembly narrowly adopts stablecoin swap tax proposal by one vote

On October 16, 2026, the French National Assembly narrowly passed Amendment I-3898 by a 38-37 vote, imposing a 31.4% capital gains tax on crypto-to-stablecoin swaps. Filed by MP Nicolas Sansu to close a loophole where 90% of French crypto gains go undeclared, the measure faces opposition from the French government and analyst concerns over reduced liquidity. A vote on October 20, 2026, determines its submission to the Senate ahead of a target January 1, 2027 effective date.

Assembly votes narrowly for amendment I-3898

• ▪French MP Nicolas Sansu filed Amendment I-3898, which was approved by France's Finance Committee before advancing to the French National Assembly
• ▪On October 16, 2026, 100 of 577 French National Assembly MPs voted (38-37, with 25 abstentions) to adopt Amendment I-3898 to the 2027 Finance bill, proposing a 31.4% capital gains tax on crypto-to-stablecoin swaps

Legislative rationale and market impact

• ▪Amendment I-3898 seeks to close a regulatory tax loophole regarding crypto-to-stablecoin exchanges and stablecoins, which French legislators argue perform money functions such as payments and investments
• ▪Analysts suggest taxing stablecoin swaps could impede stablecoin adoption in France and lead French investors to rotate into alternatives like gold-linked digital tokens
• ▪The 31.4% tax proposed in Amendment I-3898 on crypto-to-stablecoin swaps would disrupt French trading strategies that use stablecoins to park digital asset gains and avoid immediate capital gains taxes

Government opposition and next steps

• ▪If adopted without modifications by the French Parliament, the capital gains tax imposed by Amendment I-3898 on crypto-to-stablecoin exchanges will take effect on January 1, 2027
• ▪French media reported that the French government could exclude Amendment I-3898 or approve the budget bill's first iteration without amendments to prevent the tax measure from passing
• ▪The French executive government remains opposed to Amendment I-3898, which subjects crypto-to-stablecoin swaps to capital gains taxation
• ▪A French National Assembly vote on Tuesday, October 20, 2026, will decide the delivery of Amendment I-3898 and the 2027 Finance bill to the Senate for further consideration

Crypto tax revenues and compliance

• ▪Amendment I-3898 argues that untaxed crypto-to-stablecoin exchanges deprive the French government of a valuable tax resource without creating any new burden
• ▪Chainalysis reported that 90% of cryptocurrency gains in France go undeclared, with 24,000 French taxpayers declaring nearly $427 million in gains for 2024