01.07.2025 10:25

The US Supreme Court has declined to review a lower court decision, effectively upholding the Internal Revenue Service's (IRS) right to obtain cryptocurrency exchange customer data without individual warrants. This decision, stemming from the case *Harper v. Faulkender*, leaves in place a ruling granting the IRS sweeping access to user information held by platforms such as Coinbase.

This lack of Supreme Court intervention establishes a significant legal precedent, solidifying the IRS's power to compel cryptocurrency exchanges to hand over extensive transaction records. The lower court's victory for the IRS now stands unchallenged at the highest level, a significant win for tax enforcement efforts. This outcome significantly impacts the ongoing discussion surrounding privacy in the cryptocurrency space.

The ruling implies that cryptocurrency users' financial data held by centralized exchanges lacks the same Fourth Amendment protections enjoyed by personal documents kept at home. Unlike private papers, where a reasonable expectation of privacy exists, requiring a warrant for government access, this expectation diminishes when information is voluntarily shared with a third party.

The established "third-party doctrine" dictates that by entrusting personal data to a company, individuals forfeit a certain level of privacy protection. Therefore, government access to this information often requires a less stringent legal process – such as a subpoena – rather than the more demanding warrant process for personal records. This significantly alters the privacy landscape for millions of cryptocurrency investors who utilize centralized exchange platforms. The implications of this ruling are far-reaching, underscoring the need for users to understand the diminished privacy expectations inherent in utilizing such services.