French Budget Stalls as Lawmakers Reject Crypto Exit Tax Plans

Lawmakers struck down amendment I-3904, proposed by Nicolas Sansu, which aimed to integrate crypto assets into the nation's existing exit-tax structure, by a vote of 55 to 27. Shortly after, a second proposal from Mickaël Bouloux targeting household crypto holdings exceeding €800,000 failed by a 60-to-31 margin. Both measures were designed to capture paper profits from investors relocating from 2027 onward, effectively keeping current exit-tax rules limited to traditional financial holdings.

Despite these rejections, the broader budget debate still encompasses several contentious digital asset measures. Parliament is currently weighing a proposal to mandate reporting for self-custody wallets holding over €100,000, alongside potential changes to stablecoin taxation and capital gains exemptions for small-scale crypto payments. With a hard deadline of November 17 for the first reading, the government faces mounting pressure to reconcile these provisions while struggling to meet a public deficit target of 5% of GDP.