With the same logic, my stocks in my brokerage is an entry in the database where i hold the password. I don't ever recall owning a paper stock, for example. If

With the same logic, my stocks in my brokerage is an entry in the database where i hold the password. I don't ever recall owning a paper stock, for example. If i keep it in the brokerage, without withdrawing the cash, why do i pay taxes? That sounds stupid right? Then the next thing you know, people sell each other stocks in exchange for goods. "Plumbing service stock" on a broker, if you buy it, you get legal right to have plumbing service at your house free of charge. This way you can keep everything in brokerages. Of course there are flaws with the argument, but saying "crypto to crypto isn't taxable" ignores the fact that USD taxation happens based on USD. PS: while i said usd, i mistakenly wrote USDT, which was very ironic haha.