It is indeed a taxable event. People who exchange crypto for “stable”coins are generally doing so to stay out of the KYC banking realm so they can lie about their transactions to their country’s tax authorities.
I don’t know where you got this advice from but this is precisely wrong from my reading of the rules.
An asset exchange between two non legal tender assets is treated exactly the same as any other disposal and acquisition and absolutely is a chargeable event.
Please tell me this is a joke. The fact tether trades readily on an exchange is a major factor for it being convertible, even if at a price you don’t like.
>>tether trades readily on an exchange is a major factor for it being convertible
... for now
We've seen lots of the crypto exchanges fail to make exchanges for hours to days when things get hot
Official stock exchanges have a standard practice of halting trading in stocks when unusual events happen. Sometimes this cools the market and things get back to normal, sometimes the thing has gone to zero when
If Tether crashes to $0.01, I'd be a bit surprised if it didn't stop being convertible for a significant time.
i pay my taxes. i make money providing liquidity between eth and usdc.
when i'm not lp'ing, i see no reason to switch to usd so long as us-based attestations continue to be solid. the opportunity cost of being in usd on coinbase is missing lucrative nft deals.