France’s National Assembly formally rejected the revenue portion of the 2027 national budget, with 458 votes against and none in favor.
With the entire revenue bill rejected, several previously approved strict amendments targeting the crypto sector were rendered void. These included taxing exchanges of crypto assets for stablecoins and requiring declarations of self-custodied wallet assets worth more than €100,000.
Under the legislative process, the French government will submit the initial budget text to the Senate without the amendments. On-chain look-through regulation, which had sparked fierce controversy in Europe’s crypto community, has been put on hold for now.
Although the Senate retains the right to reintroduce the proposals during its subsequent review, the political deadlock created by the National Assembly’s rejection of the revenue bill has, in practice, deprived the stringent regulations targeting stablecoins and self-custody of a basis for advancing in the first stage.
With the entire revenue bill rejected, several previously approved strict amendments targeting the crypto sector were rendered void. These included taxing exchanges of crypto assets for stablecoins and requiring declarations of self-custodied wallet assets worth more than €100,000.
Under the legislative process, the French government will submit the initial budget text to the Senate without the amendments. On-chain look-through regulation, which had sparked fierce controversy in Europe’s crypto community, has been put on hold for now.
Although the Senate retains the right to reintroduce the proposals during its subsequent review, the political deadlock created by the National Assembly’s rejection of the revenue bill has, in practice, deprived the stringent regulations targeting stablecoins and self-custody of a basis for advancing in the first stage.