Musk’s X Requests Supreme Court to Block IRS from Investigating Coinbase User Transaction Records
Elon Musk’s X Team Asks U.S. Supreme Court to Review IRS Ruling on Crypto User Data
Elon Musk’s X team filed a petition with the U.S. Supreme Court at the end of March, seeking to revisit a ruling by the Internal Revenue Service (IRS) that allows for “no-justification requests for user personal data” concerning cryptocurrency users, arguing that such actions violate users’ constitutional privacy rights (Fourth Amendment of the United States).
IRS Previously Issued Broad Subpoena to Coinbase
This case originated from the IRS’s investigation into Coinbase. Initially, the IRS suspected that a large number of Coinbase users were evading taxes through cryptocurrency transactions, prompting the issuance of a subpoena to Coinbase, which required the exchange to provide personal data and transaction records for 14,000 of its users. Following the court’s approval of this request, it sparked public discontent, with many claiming that this constituted a violation of constitutional rights through a “search first, investigate later” approach.
X Argues Businesses Should Not Be Forced to Act as Government Informants
In the petition submitted to the U.S. Supreme Court last week, X stated that they believe such subpoenas undermine user trust in businesses and are illegal. They argue that without justifiable reasons, reasonable suspicion, or a court search warrant, the government should not delegate investigative powers to businesses. X’s legal team emphasized that this not only disrupts the contractual relationship between platforms and users but also violates the Fourth Amendment of the U.S. Constitution, which protects individuals from unreasonable searches.
X’s Future Financial Services Depend on User Data Rights
X noted that they currently possess user “subscription and advertising data” and are looking to build financial services in the future. Therefore, they are particularly concerned about whether user transaction records could be accessed by the government without proper authorization. This case has also drawn attention to Musk’s emphasis on the boundaries between “digital platforms and state power.”
The Court’s Decision on Limiting Government Data Investigation Powers Affects Balance Among Platforms, Users, and the State
X’s involvement in the IRS investigation case goes beyond the opposition between tech companies and the government; it concerns the balance between user personal data, platform responsibilities, and governmental investigative powers.
The willingness of the U.S. Supreme Court to restrict the IRS’s investigative powers will influence the entire trajectory of digital privacy development, particularly for the cryptocurrency industry and for X, which plans to integrate financial services into its social platform. This case has become critical.
(Potential Repeal of U.S. IRS Crypto Tax Regulations! AI Crypto Baron David Sacks: Has Suggested President Trump Sign)
Risk Warning
Investing in cryptocurrencies involves high risks, and their prices may fluctuate significantly, leading to potential loss of your entire principal. Please assess risks carefully.
