France's National Assembly Rejects Budget, Killing Crypto Tax Amendments

France's National Assembly rejected the 2027 budget's revenue section by a vote of 458–0 late Wednesday, stripping three crypto-related amendments from the text the government will now send to the Senate.

Two abstentions accompanied the unanimous rejection at first reading, according to the official voting record. The revenue section governs government income, including taxes. Its collapse means the original budget text, without the amendments lawmakers had adopted, moves forward in the legislative process.

The vote lands as a rare moment of parliamentary clarity for France's crypto sector. Three provisions had cleared the Assembly in the weeks prior. All three are now off the table — at least temporarily.

What did the Assembly throw out?

The adopted amendments covered taxation, disclosure and enforcement:

• Stablecoin taxation. On Oct. 16, lawmakers adopted an amendment making gains from crypto-to-stablecoin conversions taxable.
• Self-custody reporting. On Tuesday, the Assembly adopted a requirement for taxpayers to disclose self-custodied crypto holdings of at least 100,000 euros ($112,000), with the threshold assessed on Dec. 31 of the tax year.
• Penalty increase. A third amendment would have raised penalties from 10,000 euros to 50,000 euros for crypto platforms failing to provide information requested by tax authorities.

Each proposal had drawn attention from French crypto firms watching how Paris would align national tax rules with the EU's MiCA framework. The rejection postpones, but does not kill, that work.

Can the amendments come back?

Yes. The proposals could be reintroduced in the Senate, where they would need to survive the remaining budget process to become law. The upper chamber begins debating the finance bill on Nov. 20, followed by examination of the revenue section's articles on Nov. 23, according to its published schedule.

The risk for the provisions was visible before the vote. Faustine Fleuret, global head of public affairs at lending protocol Morpho, told Cointelegraph ahead of the ballot that rejecting the revenue section could "result in the rejection of the entire bill in the National Assembly, including provisions adopted by way of amendments."

That is precisely what happened. The vote swept away not just contested revenue measures but also amendments adopted with cross-party support.

What does this change for crypto users in France?

For now, nothing is law. French taxpayers face no new reporting duty on self-custodied wallets, no tax event on crypto-to-stablecoin swaps, and platforms keep the existing 10,000-euro penalty ceiling for non-compliance with tax authority information requests.

That reprieve may be short. If senators reintroduce the amendments, each could return in the final text negotiated between the two chambers. The 100,000-euro disclosure threshold in particular signals where French tax policy is heading: toward visibility into wallets that sit outside regulated custodians.

The operational stakes are real. Stablecoin conversion taxation would change how French traders manage positions, since moving into a dollar-pegged asset mid-cycle would trigger a taxable event rather than a neutral parking move. Platforms, for their part, would face a fivefold jump in exposure for failing to hand over client data.

The next checkpoint is Nov. 20, when the Senate opens its debate on the finance bill — the window in which the sidelined crypto provisions either re-enter the process or disappear for this budget cycle.