Coinbase and Elon Musk's X Corp. have filed amicus briefs urging the U.S. Supreme Court to reconsider the third-party doctrine in the digital age, specifically concerning IRS access to cryptocurrency user data. The case, Harper v. O'Donnell, could reshape digital privacy laws in America.
The core issue revolves around the IRS's use of 'John Doe' summonses. In 2016, the IRS issued such a summons to Coinbase, seeking data on over 14,000 users suspected of underreporting crypto gains. These summonses allow the IRS to demand data from third-party companies about unnamed individuals, raising concerns about privacy rights.
Coinbase argues that applying the third-party doctrine to blockchain and digital assets grants the government excessive surveillance capabilities without proper judicial oversight. X Corp. contends that the IRS violated James Harper's Fourth Amendment rights by obtaining a vast quantity of Coinbase records without individualized suspicion. The Supreme Court is expected to decide later in 2025 whether to hear the case.