The French National Assembly late Wednesday rejected the revenue section of the 2027 state budget and removed crypto-related changes from the version of the bill sent to the Senate.
According to the official vote, the assembly rejected the revenue part in the first reading by 458 votes to 0 with two abstentions record. The revenue section includes government revenue, such as taxes.
Following the rejection, the government will send the Senate the original budget text without the crypto-related changes approved by lawmakers.
The proposals could be reintroduced to the Senate and would have to get through the remaining budget process to become law.
Faustine Fleuret, global head of public affairs at lending protocol Morpho, told Cointelegraph before the vote that rejecting the revenue section “could lead to the rejection of the entire bill in the National Assembly, including provisions adopted through amendments.”
Self-custody reporting and stablecoin tax proposals are eliminated
The assembly adopted three crypto-related amendments before rejecting the revenue section.
On October 16, lawmakers passed an amendment that would make profits from converting crypto into stablecoins taxable.
On Tuesday, lawmakers passed another amendment that would require taxpayers to disclose self-managed crypto holdings totaling at least 100,000 euros ($112,000), with the threshold set on December 31 of the tax year.
Another change would increase Penalties of 10,000 to 50,000 euros for crypto platforms that fail to provide information requested by tax authorities.
The Senate is scheduled to begin debate on the finance bill on November 20, followed by consideration of the revenue department articles on November 23 schedule.
Related: EU investors rate cryptocurrencies as more important than retirement plans for long-term wealth creation: OKX survey
