France's National Assembly Finance Committee has backed Amendment I-CF1826, which would introduce capital gains tax on conversions from any cryptocurrency to stablecoins. The proposal, introduced by MP Nicolas Sansu, would close a tax deferral opportunity currently available to crypto investors.
Under existing French law, only direct cryptocurrency-to-fiat transactions are taxed as capital gains. The amendment addresses what lawmakers view as a gap: investors can currently exchange crypto for stablecoins—tokens pegged to fiat currencies—without triggering immediate tax obligations, since stablecoins are not classified as fiat currency under current rules.
Sansu argued that stablecoins now function as mainstream investment vehicles for purchasing goods, services, and other cryptocurrencies. "By ultimately escaping the flat tax, we deprive ourselves of a valuable tax resource that does not create any new burden: it is a simple application of the already existing tax law to a case that had not been taken into account," he stated. He noted that Italy and the UK have implemented similar measures treating stablecoins as currency.
If approved by the full National Assembly, the tax would take effect in January 2027. The plenary is scheduled to vote on the amendment and other controversial proposals on October 13.
The proposal has faced criticism from crypto industry figures. Owen Simonin, founder and CEO of Meria, a crypto investment platform, characterized stablecoins as a way for investors to temporarily exit volatile crypto markets without triggering taxation. "Stablecoins were the rest stop when an investor stepped out of the highly volatile crypto market before jumping back in later," Simonin said. "Now that rest stop comes with a fee?"
