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Bitcoin-Backed Stablecoins Break Through — But Tax Headaches Keep Traders Shackled to Custodians
Bitcoin-Backed Stablecoins Break Through — But Tax Headaches Keep Traders Shackled to Custodians
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Bitcoin just got a stablecoin makeover—finally bridging volatility with real-world utility. But before you celebrate, the taxman’s lurking.
Why it matters: For the first time, BTC’s trillion-dollar market cap can fuel stablecoins without fiat reserves. A game-changer for DeFi liquidity… if regulators don’t strangle it in its crib.
The catch: Tax rules treat these synthetic dollars as property, not currency. Every coffee bought with a BTC-backed stablecoin? That’s a taxable event. Cue the accountants rubbing their hands together.
Bottom line: Innovation outpaces regulation—again. Until the IRS catches up, custodians will keep charging you for the privilege of handling your own money. How very… traditional of them.
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