TLDR
French MPs voted 38 to 37 on October 16 to tax gains on crypto swaps into MiCA e-money tokens.
A separate plan for a ten-year crypto loss carryforward was rejected by a vote of 75 to 18.
Investors could owe tax on a swap even if the proceeds stay in crypto and no euros are withdrawn.
Same-year crypto loss offsets remain available under current rules.
The proposed start date of January 1, 2027 depends on the budget measure becoming law.
French lawmakers voted on October 16 to back a proposal that would tax gains on certain crypto swaps into stablecoins. On the same day, they rejected a separate plan that would have let investors carry crypto losses forward for ten years.
The votes took place in the National Assembly during the first reading of France’s 2027 finance bill. The budget has not yet become law.
Amendment I-3898, which covers the stablecoin swaps, passed by a vote of 38 to 37. Another 25 members abstained.
Amendment I-3653, the loss carryforward plan, failed by a vote of 75 to 18, with three abstentions.
How the Stablecoin Swap Rule Would Work
Under current French rules, private investors who trade one crypto asset for another without a cash payment get a tax deferral. This lets them change their crypto holdings without paying tax on gains that year.
The new amendment would remove that deferral when the investor receives MiCA e-money tokens. MiCA is the European Union’s Markets in Crypto-Assets regulation.
MiCA defines e-money tokens as crypto assets that aim to keep a stable value tied to one official currency, such as the euro or the US dollar.
In practice, an investor who moves Bitcoin or Ethereum that has gained value into a qualifying stablecoin could owe tax on that gain. This would apply even though the money stays in crypto and no euros reach a bank account.
The tax would apply to the gain above the acquisition cost, which is the amount recognized as the assets’ cost for tax purposes. Documented fees would be taken into account.
The proposal would also change how costs are calculated. Instead of spreading cost across a whole portfolio, it would use a basis for the assets sold, with a weighted average cost for the same kind of asset bought at different prices.
A taxable swap would reset the cost basis of the new assets. A deferred swap would carry the old basis forward.
For holdings bought before 2027, investors could use their documented actual costs. They could also choose, permanently, to spread existing portfolio cost across all holdings based on their December 31 values.
Loss Carryforward Proposal Rejected
The rejected I-3653 proposal would have allowed unused crypto losses to be carried forward for up to ten years.
Current tax guidance lets crypto losses offset crypto gains within the same tax year. A net loss cannot be carried into later years or used against gains from other types of assets.
If the stablecoin rule stays in place without another loss reform, investors could not use net crypto losses from earlier years against gains from covered swaps.
Bitcoin traded at about $81,333 at the time of reporting, down 1.83% over 24 hours. Ethereum traded near $2,381, down 2.33%.
The budget remains in its first reading. A provisional text dated October 19 keeps the stablecoin provision in Article 4 octies, with a proposed start date of January 1, 2027 that depends on the measure becoming law.
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