France advances stablecoin tax plan and 10-year crypto loss relief - Crypto News

France is moving forward with two distinct changes to how crypto is treated under its tax framework: a plan addressing stablecoin taxation and a provision allowing crypto losses to be carried forward for up to ten years. Together, they suggest French policymakers are refining the tax code rather than overhauling it, treating digital assets as an established category that needs clearer rules.

The loss-relief element is the more consequential of the two for market participants. Extending the carry-forward window to a decade acknowledges that crypto positions can stay underwater for long stretches, and that a single bad year shouldn't permanently erase the ability to offset those losses. For stablecoins, the proposed tax treatment matters because these tokens are often used as a cash-like resting place rather than as speculative holdings, so how they are classified can affect routine portfolio management.

What to watch: whether the stablecoin plan distinguishes between holding and active use, how the ten-year window is applied in practice, and whether other EU jurisdictions follow France's lead. Tax clarity can influence where activity concentrates, even when it doesn't change underlying market fundamentals.