In a landmark decision, the U.S. Supreme Court ruled against cryptocurrency exchange Coinbase, allowing the Internal Revenue Service (IRS) to access extensive user data as part of a tax compliance initiative. The court’s 6-3 decision supports the IRS’s demand for information on users who made transactions exceeding $20,000 between 2021 and 2023.
This ruling sets a powerful precedent for how crypto platforms are treated under U.S. financial regulations. While the IRS argues that this is a necessary step to combat tax evasion in the crypto space, critics warn it undermines user privacy and could damage trust in U.S.-based crypto services.
Coinbase expressed disappointment and emphasized its commitment to protecting user data while complying with the law. Industry leaders fear that this decision might drive more crypto users toward decentralized or offshore platforms.
