France's budget vote strips stablecoin tax and wallet reporting rules

France's lower house just wiped a batch of crypto tax rules off the table. Late Wednesday, the National Assembly rejected the revenue section of the 2027 state budget, and with it went three crypto-related amendments lawmakers had approved only days earlier, according to the official voting record.

The vote wasn't close. Members rejected the revenue section by 458–0 at first reading, with two abstentions. Because that section covers government income like taxes, the government will now hand the Senate the original budget text — the version without any of the crypto additions.

The amendments that got dropped were no small thing. On Oct. 16, lawmakers backed making gains from crypto-to-stablecoin conversions taxable. On Tuesday, they approved a measure forcing taxpayers to disclose self-custodied crypto holdings worth at least 100,000 euros ($112,000), with the threshold measured on Dec. 31 of the tax year. A third amendment would have raised penalties for crypto platforms that fail to hand over information tax authorities ask for to 50,000 euros, up from 10,000 euros.

Faustine Fleuret, global head of public affairs at lending protocol Morpho, told Cointelegraph before the vote that rejecting the revenue section could end up killing the whole bill in the Assembly, including anything added through amendments. That warning landed squarely on the crypto provisions.

This isn't necessarily the end of the road. The proposals could resurface in the Senate, and they'd still have to survive the rest of the budget gauntlet before becoming law. The Senate is set to start debating the finance bill on Nov. 20, then dig into the revenue section's articles on Nov. 23, per its own schedule.

So for now, France's crypto tax landscape stays where it was — and the fight moves to the upper chamber in less than two weeks.