French Lawmakers Reject 10-Year Crypto Loss Carryforward Proposal

French lawmakers rejected a proposal to carry realized crypto losses forward for 10 years, while advancing a separate measure that could tax gains on certain stablecoin conversions.

The Oct. 16 vote on the loss proposal was 18 in favor, 75 against and three abstentions. A finance committee had previously approved a 10-year carryforward measure, but the full National Assembly turned it down.

In a separate vote, the Assembly approved an amendment covering some crypto-to-stablecoin conversions by 38-37, with 25 abstentions. Under the proposal, gains on those conversions could be taxable even if the holder does not exchange the assets for fiat currency. The change is expected to take effect in 2027 if enacted.

Two other crypto tax proposals remain under review. One would extend the exit tax to unrealized gains for people moving out of France with crypto portfolios worth more than €800,000. The other would require declarations of self-custody wallet holdings above €100,000 in total value for the tax year.

The Assembly is scheduled to vote Oct. 20 on the first section of the 2027 finance bill.