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Coinbase supports taxpayer privacy in Supreme Court filing

Coinbase supports taxpayer privacy in Supreme Court filing

GrafaGrafa2025/05/01 03:10
By:Mahathir Bayena

Coinbase has filed an amicus brief with the US Supreme Court, advocating for the protection of taxpayer privacy in a case involving the Internal Revenue Service (IRS).  

The case stems from the IRS’s attempt to obtain Coinbase user transaction data dating back to 2016.  

In the brief filed on April 30, Coinbase's lawyers argued that a decision made by the First Circuit Court of Appeals could set a dangerous precedent.  

"They warned that such a ruling would allow the government to trace users’ every crypto transaction in the past and monitor every crypto transaction in the future," they stated.

The case is centered around James Harper, a Coinbase user who challenged the IRS’s use of a "John Doe" summons in 2017 to access his transaction data.  

Coinbase’s brief emphasised the importance of protecting users' privacy rights and constitutional guarantees against warrantless government access to personal data stored by third-party service providers.  

“If the First Circuit’s ruling is allowed to stand, the Fourth Amendment will give no protection to millions of law-abiding Americans,” the filing stated.  

An amicus brief is a legal filing submitted by an entity that is not directly involved in the case but offers support for one side. 

This case could set significant precedents for digital privacy rights, particularly regarding the IRS’s ability to gather taxpayer data.  

Both the US District Court for the District of New Hampshire and the First Circuit ruled against Harper's petition, which now brings the case to the Supreme Court for appeal.  

“We believe in tax compliance, but this goes far beyond a narrow and tailored request and far beyond crypto,” commented Coinbase’s Chief Legal Officer, Paul Grewal.

“You should have the same right to privacy for your inbox or account as you have for a letter in your mailbox,” he added.

It is uncertain whether the Supreme Court will take up the case, with opinions typically being released in June.  

Several industry advocates, including social media company X and the DeFi Education Fund, have filed similar amicus briefs in support of Harper’s position.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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