Coinbase Urges Supreme Court to End IRS Surveillance of Crypto Users on Exchanges
Coinbase is urging the U.S. Supreme Court to reconsider the application of the third-party doctrine in digital privacy laws through an amicus brief in the case Harper v. O'Donnell. The third-party doctrine, established in the 1970s, suggests individuals lose privacy expectations when sharing information with third parties. Coinbase's involvement stems from a 2016 IRS John Doe summons demanding data on over 14,000 users to identify potential tax violations. Coinbase argues that users retain privacy rights over digital financial data stored with third parties, likening IRS surveillance to a "financial ankle monitor." The brief references Carpenter v. United States (2018), which ruled that accessing historical cell-site data without a warrant constitutes a Fourth Amendment search. A ruling favoring privacy advocates could significantly alter how digital data is treated under the Fourth Amendment and impact data retention practices for agencies and companies. A decision on whether the Court will hear the case is expected later this year.
