Coinbase Takes a Stand for User Privacy in Supreme Court Battle Against IRS

Coinbase has escalated its legal battle to the U.S. Supreme Court, filing an amicus brief in a case that challenges the IRS’s 2016 demand for extensive customer transaction data. The cryptocurrency exchange is arguing that third-party service providers should not be compelled to automatically surrender users’ digital privacy rights. This dispute traces back to the Trump administration’s tax authorities, who sought broad access to financial records under the premise of diminished privacy expectations in the digital age. Coinbase’s move highlights the growing tension between regulatory oversight and the privacy rights of cryptocurrency users, setting a potentially pivotal precedent for the industry.

Coinbase Challenges IRS in Supreme Court Over User Data Privacy

Coinbase has entered the legal fray at the U.S. Supreme Court, filing an amicus brief in a case stemming from a 2016 IRS demand for customer transaction data. The crypto exchange argues third-party service providers shouldn’t automatically forfeit users’ digital privacy rights.

The dispute originated when Trump-era tax authorities sought sweeping access to financial records, claiming diminished privacy expectations when data is shared with intermediaries. Coinbase successfully narrowed the request through litigation but now seeks broader precedent-setting protections.

"Digital assets demand digital-age privacy standards," the filing implies, positioning the case as a watershed moment for financial surveillance in cryptocurrency markets. The outcome could redefine compliance obligations for all exchanges handling BTC, ETH and other digital assets.

Coinbase Challenges IRS Crypto Data Request in Supreme Court Brief

Coinbase has escalated its defense of user privacy by filing an amicus brief with the U.S. Supreme Court, challenging the IRS’s sweeping 2016 John Doe summons for cryptocurrency customer data. The exchange argues the demand for records of 14,000+ users—without individualized suspicion—violates Fourth Amendment protections against unreasonable searches.

The April 30 filing supports petitioner James Harper, whose financial records were obtained through the controversial summons initially targeting 500,000 Coinbase users. While the exchange initially resisted on privacy grounds, it ultimately complied with a narrowed court order. This case could set precedent for government access to blockchain financial data.