Coinbase Challenges IRS Access to Crypto User Data Before Supreme Court

Coinbase is taking its fight against the IRS’s broad access to crypto user data before the Supreme Court. The company argues that outdated privacy laws no longer adequately protect users in the digital age. Their legal challenge centers on the third-party doctrine, which allows government agencies to collect data from companies like Coinbase without individual suspicion or warrants. Coinbase claims this rule no longer fits the contemporary context of blockchain technology. The argument stems from a time before the internet and blockchain existed, assuming users have no reasonable expectation of privacy when sharing information with third parties. Coinbase argues that the practice fails in the crypto world as once a user’s identity is linked to a crypto wallet, all transactions become transparent and visible. This creates constant digital monitoring without warrants or legal oversight, according to the company. The impact could be significant for financial privacy nationwide. If successful, this case could reshape how agencies handle data collection across all digital services.