The French National Assembly rejected the revenue portion of the draft 2027 state budget without a single vote in favor. Through an absolute 458-0 vote with two abstentions on its first reading Wednesday night (11/4/2026), the lower house officially halted the government’s proposed state revenue bill.
The voting decision immediately shifted the direction of digital asset policy in France. The total rejection of the revenue portion automatically scrapped all crypto-related amendments previously adopted by lawmakers. The French government must now forward the original budget draft to the Senate without including the additional digital asset tightening amendments that had passed in the National Assembly.
For the French crypto community, the budget rejection returns the draft document to square one, free from the burden of a series of new rules.
List of Sidelined Crypto Rules
The previous budget draft contained several tightening provisions targeting digital asset holders and exchanges alike. One of the amendments now dropped was an obligation for taxpayers to report self-custody crypto wallet holdings with a minimum balance of 100,000 euros, or around $112,000, as of Dec. 31. Lawmakers had just approved the self-custody reporting clause on Tuesday (11/3/2026), a day before the revenue draft was rejected.
Other tax rules were also removed from the regulatory text. Lawmakers had previously approved taxing gains on crypto-to-stablecoin conversion transactions on Oct. 16, 2026. Wednesday night’s budget rejection means the stablecoin conversion tax clause will not be sent to the Senate.
Beyond targeting individual users, the National Assembly’s initial draft had outlined heavier penalties for crypto service providers. A proposal to increase fines on crypto platforms failing to comply with tax authority data requests - raised from 10,000 euros to 50,000 euros - was also dropped from the current draft regulations.
Faustine Fleuret of lending protocol Morpho explained the legal basis behind the dismissal of these articles. According to Fleuret, the rejection of the revenue section led to the rejection of the entire draft bill in the National Assembly, including all attached amendments.
Chance of Reintroduction in the Senate
The budget debate now moves to the French Senate. The upper house is scheduled to begin deliberations on the finance bill on Nov. 20, 2026, and examine the revenue articles on Nov. 23, 2026.
The removal of the amendments in the lower house provides breathing room for crypto investors and stablecoin users in France. Even so, regulatory certainty is not yet final, as crypto tightening proposals could still be reintroduced by lawmakers when the Senate reviews the revenue articles in late November.
Reported via Cointelegraph.
Previously: France Passes 100,000 Euro Self-Custody Reporting Obligation - Shopping Tax Relief Rejected
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
