Supreme Court Denies Coinbase User Appeal: IRS Can Still Access Your Crypto Data – What Now?

Key Points

1. The Supreme Court denied James Harper's petition, which argued the IRS violated his constitutional rights by seizing his financial data from Coinbase without proper cause.

2. The decision upholds the IRS's ability to access crypto users' data under the third-party doctrine, established in the 1976 case United States v. Miller.

3. Coinbase initially resisted the IRS summons but ultimately complied, with its chief legal officer criticizing the broad scope of the request.

4. Privacy advocates and some justices, like Neil Gorsuch, have questioned the third-party doctrine, but the Court's denial leaves the legal framework unchanged.

5. The IRS has increased scrutiny on crypto taxes, sending more warning letters and notices to crypto investors in recent months.