France budget rejection sidelines stablecoin tax, wallet reporting

The French National Assembly rejected the 2027 state budget’s revenue section late Wednesday, removing crypto-related amendments from the version of the bill sent to the Senate.

The Assembly rejected the revenue section by a vote of 458–0 at first reading, with two abstentions, according to the official voting record. The revenue section covers government income, such as taxes.

After the rejection, the government will send the Senate the original budget text, without the crypto-related amendments adopted by lawmakers.

The proposals could still be reintroduced in the Senate and would need to survive the remaining budget process to become law.

Faustine Fleuret, global head of public affairs at lending protocol Morpho, told Cointelegraph before the vote that rejection of the revenue section could “result in the rejection of the entire bill in the National Assembly, including provisions adopted by way of amendments.”

Self-custody reporting and stablecoin tax proposals fall away

The Assembly adopted three crypto-related amendments before rejecting the revenue section.

On Oct. 16, lawmakers adopted an amendment that would make gains from crypto-to-stablecoin conversions taxable.

On Tuesday, lawmakers adopted another amendment that would require taxpayers to disclose self-custodied crypto holdings totaling at least 100,000 euros ($112,000), with the threshold assessed on Dec. 31 of the tax year.

Another amendment would increase penalties from 10,000 euros to 50,000 euros for crypto platforms failing to provide information requested by tax authorities.

The Senate is scheduled to begin debating the finance bill on Nov. 20, followed by an examination of the revenue section’s articles on Nov. 23, according to its schedule.