France's government has advanced a legislative package that would establish a dedicated tax regime for stablecoins and allow crypto investors to carry forward capital losses against future gains for up to 10 years, according to a Crypto News report.

The proposal, which remains subject to parliamentary review, marks one of the most detailed fiscal treatments of digital assets put forward by a European Union member state. It pairs an issuance-side framework for stablecoin issuers with a retail-facing tax relief measure designed to align crypto losses with existing securities tax treatment.

What does the plan cover?

Two distinct policy tracks sit inside the same legislative vehicle. The first introduces a tax framework aimed specifically at issuers and service providers operating in the stablecoin segment. The second extends the loss-relief window for individuals and entities holding crypto assets, lifting the existing carry-forward period to a decade.

Officials have framed the dual approach as a way to clarify the treatment of euro-denominated and foreign-collateralised stablecoins while reducing the punitive effect of volatile market cycles on long-term holders.

Why a 10-year loss window?

France's current rules permit investors to offset crypto gains with losses over a much shorter horizon. Critics have argued that the limited window disadvantages buy-and-hold investors who realise losses during downturns and gains only after multi-year recovery cycles.

A 10-year carry-forward mirrors the treatment long available for traditional securities in many jurisdictions and would bring French crypto taxation closer to the framework already applied to listed equities. The change is likely to affect portfolio construction for both retail holders and treasury operations at France-domiciled crypto businesses.

Who does the stablecoin tax hit?

The stablecoin track is drafted as an issuer-side measure rather than a transaction levy. Targeting the issuance and reserve-management layer reflects Paris's preference for regulating the points of token creation and redemption rather than imposing per-transfer withholding.

That approach aligns France with the European Union's Markets in Crypto-Assets Regulation (MiCA), which entered into force with phased application across 2024 and 2025 and reserves the most prescriptive requirements for issuers of asset-referenced and e-money tokens. The French draft appears designed to complement MiCA by adding a domestic revenue component to issuers operating under the EU-wide passporting regime.

What changes operationally for issuers?

Reserve composition, audit frequency and reporting cadence are likely candidates for clarification under any issuer-focused tax rule. Crypto businesses structuring euro stablecoins from Paris would need to map their reserve management, attestation schedules and corporate structure against the new requirements.

Foreign issuers serving French users through MiCA passports would also fall within the perimeter, depending on how the law defines taxable presence. Compliance teams should expect additional filings aligned to corporate-tax deadlines.

What is the enforcement timeline?

The bill has cleared an initial government stage but requires adoption by the National Assembly and Senate before enactment. The 10-year loss carry-forward would take effect at the start of the tax year following promulgation, while the stablecoin provisions are expected to apply from a date set by implementing decree.

Market participants and tax advisors will watch the parliamentary calendar closely. A vote before the end of the current session would give issuers a defined runway to adapt reserve and reporting structures; a delay would push implementation into 2026 and create overlap risk with MiCA's remaining transitional milestones.