coinbase Joins Supreme Court Case for Crypto Privacy
Coinbase has stepped into a major legal battle over crypto privacy. The exchange filed an amicus brief to the U.S. Supreme Court on April 30, supporting James Harper’s case against the IRS. This case challenges how the IRS handles crypto user data.
In 2016, the IRS asked Coinbase for data on 14,000 customers. They where looking for signs of tax evasion. The IRS used the third-party doctrine, which says users lose privacy when they share data with others, like crypto exchanges. Harper sued the IRS in 2020, saying this was an overreach.
Coinbase argues that this doctrine is outdated for crypto. They believe exchanges are more like platforms than custodians. The IRS should need a good reason to request info, not just broad searches.
Coinbase stated, “The IRS’s actions were unlawful and unprecedented. They targeted 14,355 Americans without reasonable suspicion of tax evasion.”
The Supreme Court’s decision could change how the government protects user privacy. if they side with Harper, it would limit the IRS’s power in crypto cases.
The Supreme Court is the highest court in the U.S. Its rulings set legal precedents that everyone must follow.
