French Lower House Backs 31.4% Tax on Crypto-to-Stablecoin Swaps

France's National Assembly, the lower house of parliament, has approved a 31.4% capital gains tax on swaps between cryptocurrencies and stablecoins, according to a legislative update reported by bloomingbit. The vote covers a conversion category that French taxpayers have widely used and that previously sat in a gray zone of the country's tax code.

The 31.4% figure matters because it matches the flat rate France already applies to cryptocurrency disposals against fiat currency. Until now, many market participants treated crypto-to-stablecoin trades as non-taxable internal movements, since no exit to traditional money occurred. The lower house's decision closes that gap and aligns stablecoin conversions with the broader digital-asset disposal regime.

What does the vote change?

The approval subjects each swap from a volatile crypto asset into a stablecoin to immediate capital gains recognition. A trader who buys bitcoin, sees it appreciate, and rotates into a dollar-pegged token would, under the new rule, realize a taxable gain at the moment of the swap rather than at cash-out.

That creates two practical consequences. First, active traders who use stablecoins as parking liquidity between positions would face a materially higher reporting burden, with every rotation generating a taxable event. Second, French platforms and intermediaries would need to track swap-level gain calculations for their users, an operational load comparable to what they already handle for fiat off-ramps.

The move narrows a structuring avenue that distinguished France from several peer jurisdictions, where token-to-token trades, including stablecoin conversions, are already taxed at disposal. French taxpayers had exploited the ambiguity to defer recognition, effectively holding unrealized gains in stablecoin form without triggering the levy.

What happens next in the legislative process?

Approval by the National Assembly does not finalize the measure. The text still follows France's standard legislative route, which includes Senate review and potential reconciliation between the two chambers before enactment. Amendments remain possible at each stage, and the effective date of the tax, along with transition rules for positions already held in stablecoins, will depend on the final text.

Market participants will watch for guidance from the French tax administration on whether the levy applies retroactively or only to swaps executed after enactment. Until the parliament completes the process and the administration issues implementing details, the 31.4% rate remains an approved proposal rather than settled law.