Is converting USDT to USD taxable?

Could you please clarify if the process of converting stablecoins like USDT to traditional fiat currency, such as USD, is subject to taxation in most jurisdictions? Does the act of exchanging one form of digital currency for another, specifically from a stablecoin tied to the US dollar to the actual US dollar, trigger any tax obligations that investors should be aware of? Additionally, are there any specific tax regulations or exemptions that might apply to such conversions, and how does the reporting process typically work for such transactions?