Coinbase Defends User Privacy in Landmark Supreme Court Battle Against IRS

Coinbase (COIN) has filed an amicus brief in a U.S. Supreme Court case challenging an IRS request for a massive trove of customer data from 2019. The exchange argues that the third-party doctrine should not give the IRS carte blanche to conduct broad searches of digital records, asserting that such actions violate the reasonable expectation of privacy for over 14,000 Americans. Coinbase’s position emphasizes that protecting digital privacy is essential to maintaining user trust and the integrity of blockchain technology. The case also features input from a Bitcoin (BTC) researcher who previously sued the IRS over similar practices, adding a notable perspective on maintaining user anonymity in the crypto space. The battle is set against a backdrop of growing concerns over government overreach in data collection, and it has significant implications for the regulatory framework governing digital currencies.