Is USDT taxable?

Could you please clarify whether transactions involving USDT, the stablecoin pegged to the US dollar, are subject to taxation? As the cryptocurrency market continues to evolve, it's crucial for investors and traders to understand the tax implications of their activities. Does the IRS view USDT as a currency, commodity, or security for tax purposes? Are there any specific rules or regulations surrounding the taxation of USDT transactions? How do these rules differ from traditional currency transactions? I'm seeking guidance to ensure compliance with tax laws and avoid any potential issues in the future.