Analysis
The structural incentive pushes users toward the unregulated stablecoin, the exact opposite of what MiCA intended.
On October 7, 2026, the French National Assembly’s Finance Committee voted 38-37 to extend the country’s existing 31.4% flat tax on crypto gains to crypto-to-stablecoin swaps. The amendment, sponsored by Communist MP Nicolas Sansu and 16 left-wing co-signers, treats swaps into MiCA-regulated stablecoins as taxable disposals, effective January 1, 2027. But the vote carries a structural irony that undermines the very regulatory framework it claims to enforce: USDT, the world’s largest stablecoin, is exempt.
The mechanism is straightforward. Under EU MiCA regulation, stablecoins are classified as either electronic money tokens (EMTs) or asset-referenced tokens (ARTs). USDC and EURC qualify as EMTs because they are pegged to a single fiat currency and issued by MiCA-licensed entities. USDT, which has not obtained MiCA authorization, does not qualify. The French amendment targets swaps into MiCA-compliant stablecoins specifically, leaving non-MiCA tokens like USDT outside its scope.
The result is a perverse incentive structure. By taxing swaps into regulated stablecoins while exempting unregulated ones, France is effectively punishing compliance. Users who choose MiCA-compliant stablecoins face a 31.4% tax on every swap, while those who stick with USDT face no such burden. The structural incentive pushes users toward the unregulated stablecoin, the exact opposite of what MiCA intended.
The Chainalysis data tells the story. Between July 2024 and June 2025, EURC volume in Europe grew by 2,727%, while USDC grew by just 86%. This growth was driven by MiCA’s restriction on CASPs to compliant stablecoins, which excluded USDT and triggered market recalibration. EURC monthly volume rose from approximately $42.5 million in June 2024 to over $7.4 billion in June 2025, averaging approximately 76% month-over-month growth. The French amendment threatens to reverse this trend by making MiCA-compliant stablecoins more expensive to use.
The legislative path is not straightforward. The Finance Committee adopted the amendment on October 7, but then on October 9, the committee rejected the entire revenue section of the 2027 budget by 31 votes to 3. This effectively nullified the committee’s amendments, requiring supporters to re-table them for the floor debate. The amendment was re-tabled on October 13, and a subsequent floor vote reported at 38 to 37 in favor, with low attendance of approximately 100 of 577 lawmakers. The National Assembly is scheduled to vote on the revenue section on October 20, 2026.
The timing is significant. With the GENIUS Act’s effective date of January 18, 2027 approaching, and the Treasury Section 3 NPRM comment deadline closing tonight at 03:59:59Z October 20, the regulatory landscape is tightening. France’s amendment, if enacted, would create a structural disadvantage for MiCA-compliant stablecoins in one of Europe’s largest markets, potentially undermining the EU’s own regulatory framework.
The amendment also includes a companion exit-tax provision for crypto holdings above €800,000 for households relocating tax residence abroad, though the rate remains unspecified. This suggests a broader trend toward taxing crypto assets as they move across borders, not just as they are traded.
For the stablecoin industry, the French vote is a warning. If other EU member states follow France’s lead, the structural incentive to use unregulated stablecoins could become entrenched, undermining MiCA’s goal of creating a level playing field for compliant issuers. The irony is stark: the regulation designed to bring stability and compliance to stablecoins may end up punishing the very issuers who played by the rules.
Nolan Pratt works for Forkast.
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