Supreme Court Rejects Coinbase User’s Privacy Appeal Against IRS
The U.S. Supreme Court has denied Coinbase user James Harper’s appeal against the Internal Revenue Service (IRS), marking the end of his prolonged legal battle over the access to crypto exchange user data. Harper accused the IRS of violating his Fourth Amendment rights by attempting to access his Coinbase trading history without a warrant.
The Court’s decision not to elaborate on its reasoning follows a lower court ruling in favor of the IRS, affirming the IRS’s legal ability to request financial data from platforms like Coinbase using a John Doe summons, a method that allows the collection of user records without individual notification. The Court determined that the financial data belonged to Coinbase as a company and not to Harper personally, as Coinbase operates under EU regulations where Harper’s rights did not apply.
IRS Granted Access to Coinbase User Data
The case dates back to 2020 when the IRS started sending broad summons to Coinbase for user information to investigate potential tax evasion. Despite Harper’s argument that the data collection was unconstitutional, citing a violation of his privacy rights, the Court found no Fourth Amendment breach, as Coinbase’s privacy policy had already informed users about data sharing with authorities.
Coinbase Under Regulatory Pressure
This legal decision comes amidst increasing regulatory scrutiny on Coinbase. In April, the state of Oregon filed a lawsuit against the exchange, alleging the sale of high-risk and unregistered securities. Coinbase, denying any wrongdoing, faces legal challenges that could impact its operations and the broader crypto market.
Ryan VanGrack, Coinbase’s VP of Legal, criticized the Oregon lawsuit, suggesting political motives behind the legal action. The ongoing legal battles pose a significant challenge to Coinbase’s operations and its stance on regulatory compliance.
As centralized exchanges face regulatory challenges, self-custody solutions are gaining attention as users seek more control over their assets and data privacy.
Disclaimer
This article is for informational purposes only and does not provide financial or investment advice. Readers are advised to conduct their research before making any financial decisions.
By Brenda Mary
Brenda is a news writer at CoinChapter, focusing on producing well-optimized content on blockchain news and technical analysis. With expertise in price forecasting and stock market participation, Brenda is dedicated to ensuring reader satisfaction.
