Yeah, it’s a kind of a private (strike) and public BTC/LN network subsidy for hard money end users. The government could regulate away this arbitrage by redefining taxable events, I guess, also.

Or maybe strike never actually touches the dollar settlement layer (IRS and state purviews) and so the LN networked dollars are only theoretically taxable. Need a graphic for how strike does this to be able to ask better questions.