The phrasing here seems to imply that exchanging one cryptocoin for a stablecoin should NOT create a taxable event. That's clearly not a long term reasonable expectation to hold as it's an obvious loophole all tax authorities will be looking to shut in the longer term.
How is it a loophole? Tax applies to your capital (gains) denominated in USD.
Example 1: I deposit 10K USD and buy BTC for it. After a while I sell the BTC and get back 15K USD. I've now gained 5K in USD, which is taxable.
Example 2: I deposit 10K USD and buy BTC for it. Next I swap the BTC to ETH, a stablecoin, or any other crypto token. I've gained nothing in USD. I still have 10K USD worth of crypto. I didn't sell crypto, so there should be no tax.
Unless...you formally acknowledge a stablecoin to be representative of USD. Which may have all kinds of complicated implications.
Why should it, though? It's still just another cryptocurrency at the end of the day. The government shouldn't be looking for their vig until you exchange for legal tender, and I don't see how a third-party organization promising a specific exchange rate for the token changes that.
