The National Assembly in France has approved an amendment to the 2027 Finance Bill (PLF), which would introduce a new tax on the conversion of cryptocurrencies to stablecoins. The amendment, proposed by communist deputy Nicolas Sansu, was passed by the Finance Commission. It would require individuals to calculate a capital gain whenever they convert a cryptocurrency, such as Bitcoin, into a stablecoin like USDC. If a capital gain is realized, it would then be subject to either a flat tax rate or the progressive income tax system. At present, only conversions to traditional fiat currencies like the euro are taxed. The amendment specifically focuses on stablecoins that are regulated under the European Union's MiCA regulation. This means that decentralized stablecoins, such as DAI, or those backed by physical assets like gold (e.g., PAXG), and USDT would not be affected by the proposed tax. However, the amendment still needs to be formally approved by both the National Assembly and the Senate before it can become law. This development has occurred amid tense discussions over the 2027 Finance Bill, as the French government faces financial challenges. Although the amendment has been approved by the National Assembly, the government could still choose to reject it. In previous years, such as with the 2025 and 2026 Finance Bills, the government used the 49-3 procedure to adopt legislation without a full vote. This allows the executive branch to decide which amendments to accept or reject before finalizing the bill. The 49-3 procedure gives cryptocurrency investors time to raise concerns about the potential impact of the amendment. However, the government’s stance remains unclear, and the final outcome will depend on the political negotiations and priorities of the current administration.