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

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.