Elon Musk’s X Takes On the Supreme Court: Will the IRS Be Stopped from Accessing Coinbase Data?

Elon Musk’s X platform approached the U.S. Supreme Court with a legal motion to limit Internal Revenue Service access to user information, which lacks proper search warrants. The legal filing stands behind users fighting against the IRS’s attempt to obtain Coinbase financial records.

According to the amicus curiae, X argued that the IRS violated constitutional rights by using a subpoena to access bulk transaction data. This subpoena covered over 14,000 Coinbase users and included three years of financial records, all obtained without individual suspicion.

James Harper sued in 2020 because he believed the IRS obtained his personal Coinbase data through illegal procedures. The agency supposedly neglected to notify him and bypassed its duty to obtain legal authorization for the data seizure.

The IRS received court approval from the judicial system in 2023 for their actions according to their legal mandate. Harper and X and seven advocacy organizations are now pursuing an appeal of the court decision to the Supreme Court for further Review.

The company’s legal submission stresses the fundamental issues that stem from enabling government entities to obtain financial digital data without specific court authorization. According to the brief, the Fourth Amendment protection against unconstitutional searches and seizures establishes this practice as illegal.

Supporters, including civil liberties researchers and digital rights advocates, have noted that suspicion-free subpoenas would create privacy issues for users across technology and financial industries. The members of this group asked the Court to extend protection to digital financial records, which should match the protections available for traditional physical documents.

Supreme Court Seeks Federal Response Amid Growing Digital Privacy Concerns

Supreme Court leaders asked the federal government to submit its response as they showed potential interest in conducting an additional Review of the petition. The Supreme Court initiated this procedural step because government authorities and privacy rules are now under increasing legal examination.

This case might transform industry practices in responding to police requests for user information. This decision will potentially affect future examinations of digital privacy rights in the United States.

Both parties stand by as the Court decides its future course to establish the governmental boundaries for accessing financial user data from private platforms.