Coinbase Asks Supreme Court to Dismantle Mass Surveillance Powers Targeting Crypto Users

Crypto exchange Coinbase (Nasdaq: COIN) revealed on April 30 that it had filed an amicus brief with the U.S. Supreme Court, urging the justices to take up Harper v. O'Donnell, a case challenging the Internal Revenue Service's mass data collection from the cryptocurrency platform.

Crypto exchange Coinbase (NASDAQ:COIN) is urging the Supreme Court to take up a case that could dismantle the IRS's mass surveillance powers and safeguard the future of crypto freedom.

In a move that underscores the company's commitment to digital privacy, Coinbase has filed an amicus brief with the high court, urging the justices to hear Harper v. O’Donnell. This case, currently pending with the Supreme Court, challenges the Internal Revenue Service's ability to collect vast amounts of data from the cryptocurrency platform.

The history of this case began when the Internal Revenue Service served Coinbase with a sweeping John Doe summons. This summons demanded the production of personal and financial data for over 500,000 customers involved in millions of transactions across three full years. The agency's use of a John Doe summons violates Fourth Amendment protections and abuses the third-party doctrine, a controversial legal theory permitting the government to access data held by third-party service providers without a warrant.

“The third-party doctrine says that any time you voluntarily share info with a third party—you have no reasonable expectation of privacy whatsoever. This applies to email, bank accounts, phone calls, and more. Sadly, lower courts have applied the doctrine broadly to permit the IRS to conduct mass surveillance of crypto users despite the clear protections of the Fourth Amendment,” Grewal stated.

Coinbase's brief warns that the lower court's decision effectively endorses indefinite surveillance of blockchain activity. Once authorities match a user's identity with a wallet address, they can track every past and future transaction on the blockchain—a capability that raises serious concerns for digital privacy.

The company's brief argues that such expansive access to user information is not just a cryptocurrency issue. It has broader implications for various institutions and services.

“We believe in tax compliance, but this goes far beyond a narrow and tailored request and far beyond crypto. This applies to banks, phone companies, ISPs, email, you name it,” Grewal added.

Coinbase is asking the Supreme Court to intervene and set clear boundaries for government intrusion into personal data in the digital age. The company's stance reflects its strong commitment to user privacy and its belief in a balanced approach to taxation and digital rights in the evolving cryptocurrency landscape.input: Coinbase (NASDAQ:COIN) is asking the Supreme Court to take up a case that could dismantle the IRS's mass surveillance powers and safeguard the future of crypto freedom.

The crypto exchange is urging the justices to hear Harper v. O’Donnell, which challenges the Internal Revenue Service's ability to collect vast amounts of data from the cryptocurrency platform. The case is currently pending with the Supreme Court.

The history of this case began when the Internal Revenue Service served Coinbase with a sweeping John Doe summons. This summons demanded the production of personal and financial data for over 500,000 customers involved in millions of transactions across three full years. The agency's use of a John Doe summons violates Fourth Amendment protections and abuses the third-party doctrine, a controversial legal theory permitting the government to access data held by third-party service providers without a warrant.

“The third-party doctrine says that any time you voluntarily share info with a third party—you have no reasonable expectation of privacy whatsoever. This applies to email, bank accounts, phone calls, and more. Sadly, lower courts have applied the doctrine broadly to permit the IRS to conduct mass surveillance of crypto users despite the clear protections of the Fourth Amendment. Today Coinbase filed an amicus brief with the U.S. Supreme Court to right this wrong.

We know how painful the overreach of the doctrine can be. In 2017 the IRS asked for the financial data of more than 500K Coinbase customers. We vigorously pushed back against this government overreach on behalf of our customers, and the IRS substantially narrowed it. But too often this type of fishing expedition is allowed by the courts.

As we explain here, you should have the same right to privacy for your inbox or account as you have for a letter in your mailbox.

Coinbase is asking the Supreme Court to restore meaningful limits on government access to personal data in the digital era. The company warns that unchecked use of the third-party doctrine could erase privacy expectations across online services.

"The lower court's decision in this case endorses indefinite surveillance of activity on public blockchains. If the government can identify a user's wallet address and match it to their identity, they can then see every past, present, and future transaction on the blockchain with complete clarity, setting the stage for an extreme invasion of privacy," the brief stated.

Coinbase's brief cites the Supreme Court's 2018 decision in Carpenter v. United States to argue that outdated legal precedents from the 1970s do not justify modern surveillance technologies and practices.

The company's involvement in this case highlights its commitment to user privacy and its efforts to engage with issues arising from the