Coinbase privacy appeal rejected by US Supreme Court
James Harper’s legal challenge over alleged unconstitutional IRS data collection has ended after the Supreme Court declined to review the case.
The US Supreme Court has declined to hear an appeal from a Coinbase user, effectively allowing the Internal Revenue Service (IRS) to access user data without new restrictions.
The decision ends James Harper’s legal battle over the IRS’s broad request for user data, which he claimed violated constitutional privacy rights.
Harper’s challenge stemmed from a 2016 IRS summons demanding data from over 14,000 Coinbase users suspected of underreporting crypto income. Lower courts rejected his claims, citing the third-party doctrine that removes privacy rights for data shared with external platforms.
By refusing to take up the case, the Supreme Court leaves intact the precedent set by lower courts. The ruling confirms that centralised exchange users like those on Coinbase lack Fourth Amendment protection over government access to their financial data.
Experts warn the ruling could have broader implications beyond crypto. The outcome may reinforce the government’s ability to obtain user data from financial and technology platforms, potentially expanding surveillance powers across the digital economy.
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