Stablecoins are taxed as property, just like other crypto
Stablecoins are cryptocurrencies like USDT (Tether), USDC, and DAI that are pegged to a fiat currency like USD. Even though stablecoins often equal the value of the U.S. dollar, they are still treated as property by the IRS because they are cryptocurrency. While buying crypto with USD is not a taxable event, buying crypto with stablecoins is.
Because stablecoins remain at a constant value, you likely won’t report any gain or loss on your holdings when you sell or trade them, as you only have gains or losses if the value of a crypto asset changes while you hold it.