France Moves to Tax Stablecoin Swaps as 10-Year Crypto Loss Relief Advances - Bitcoin Foundation

France is advancing a tax framework that would treat swaps between stablecoins and other crypto assets as taxable events, while also introducing a ten-year carry-forward period for crypto losses. Under the reported approach, converting into a stablecoin would no longer defer tax liability the way some holders might assume; the disposal would be recognized at the point of exchange.

The loss-relief component is equally significant. A ten-year carry-forward would allow investors to offset losses against future gains over a much longer horizon than many existing regimes permit, potentially softening the impact of taxing stablecoin swaps in the same cycle.

For markets, the key takeaway is structural rather than directional: tax treatment shapes behavior. If stablecoin conversions become taxable events, some participants may reconsider how frequently they rotate into dollar-pegged tokens as a resting place. What to watch is the final legislative text, the effective date, and whether other jurisdictions follow with similar rules.