Supreme Court Rejects Review of High-Profile IRS Crypto Case
The U.S. Supreme Court has officially denied a petition to review a legal case involving the Internal Revenue Service (IRS) and its controversial request for Coinbase user data, closing the door on a significant privacy dispute with implications for the broader crypto and digital finance community.
In a formal order released on June 30, 2025, the court stated that the “petition for a writ of certiorari is denied,” meaning it will not hear the case originally brought forth by James Harper, a Coinbase user who challenged the IRS’s access to his crypto-related financial information.
IRS Demands Sparked Widespread Legal and Industry Reactions
The dispute originated when the IRS issued a sweeping subpoena to Coinbase, requesting detailed data from thousands of customer accounts. This included transaction history, account security settings, and internal correspondence, a move that Harper and many in the crypto industry viewed as an overreach of government authority.
Coinbase initially resisted the demand, citing user privacy concerns. However, a lower court eventually ruled in favor of the IRS, although it limited the scope of the requested data.
Fourth Amendment Rights and the Third-Party Doctrine Under Scrutiny
In response, multiple amicus briefs were filed over the past year urging the Supreme Court to intervene. These included submissions from high-profile entities such as X (formerly Twitter), which argued the IRS violated Fourth Amendment rights through a “dragnet subpoena” without individualized suspicion.
Coinbase also urged the court to reexamine the third-party doctrine, which holds that individuals who voluntarily share data with companies such as banks or exchanges have no reasonable expectation of privacy.
Coinbase’s Chief Legal Officer Paul Grewal emphasized, “We believe in tax compliance, but this goes far beyond a narrow and tailored request and far beyond crypto.” He added that the ruling could apply to banks, ISPs, and even email providers.
What This Means for Crypto Users and Financial Privacy
This decision reinforces the government’s authority to request financial records from third-party platforms, including crypto exchanges. It may also signal increased IRS scrutiny of digital asset transactions going forward.
The denial to review leaves privacy advocates disappointed, but it highlights a growing need for updated privacy laws in the age of digital finance and decentralized technologies.
As the crypto industry evolves, regulatory clarity and user data protections will remain key issues shaping the future of blockchain and digital asset compliance.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.