🇺🇸The US Supreme Court has rejected Coinbase's request to block the IRS from accessing user data, allowing the tax authority to obtain records of high-volume customers as part of its efforts to crack down on tax underreporting.

The US Supreme Court has effectively allowed the Internal Revenue Service (IRS) to access Coinbase user data by rejecting the crypto exchange's request to block the IRS.

In 2016, the IRS suspected widespread underreporting of crypto-related income and issued a court-approved summons to Coinbase, requesting information on high-volume users, including James Harper.

Harper claimed the IRS request violated his Fourth Amendment rights, which protect against unreasonable searches and seizures. He argued that obtaining detailed financial data without individual suspicion was an overreach.

The government countered that Harper voluntarily provided his data to Coinbase and waived any reasonable expectation of privacy. They cited legal precedents like US v. Miller, which held that financial data held by third parties, such as banks, don't receive the same constitutional protections.

A ruling in favor of the IRS could set a precedent that weakens digital privacy protections for millions of crypto users in the US. The case may have broader implications for crypto users and exchanges, potentially influencing how user data is handled and protected.

The IRS continues to ramp up enforcement, sending warning letters to crypto investors with potential tax liabilities.

Coinbase has enhanced its tax reporting tools, issuing 1099 forms for eligible users.

The crypto community remains vigilant, watching for potential impacts on digital privacy and financial freedom.#StrategyBTCPurchase $ETH