The Supreme Court’s decision to allow the IRS to obtain cryptocurrency data dealt a crushing blow to more than 14,000 Bitcoin users. This ruling is a powerful reminder that the government has the ability to regulate and force disclosure of data connected with Bitcoin transactions. The ruling sets forth a slippery slope for the privacy and regulation of cryptocurrency.
In doing so, the court’s ruling leaves little doubt that the BTC at issue is a form of cryptocurrency. As such, its regulatory jurisdiction belongs to the federal government, specifically the IRS. This makes privately usage Bitcoin no better than cash. Transaction data from Bitcoin users is open to government surveillance. This ruling serves as a poignant reminder about the breadth of the government’s power to seize your Bitcoin data.
The IRS’s newfound authority over cryptocurrency data, particularly Bitcoin, is definitely here to stay. This grant of authority gives the IRS broad powers to audit and review millions of Bitcoin transactions, impacting millions of current and future users. The Court’s ruling fully supports the IRS’s access to, and use of, data related to Bitcoin and other cryptocurrencies.
Bitcoin transactions are now unambiguously subject to government access, which fundamentally changes the nature of how users interact with the cryptocurrency. The decision goes much further, deeply impacting Bitcoin transactions and the data tied to those transactions. This ruling is an important precedent that Bitcoin, like all other goods and services, can be regulated by the government.
This ruling has far-reaching consequences for Bitcoiners. They need to be aware now more than ever that government agencies are able to tap into their transaction data. As far as Bitcoin users’ right to privacy is concerned, the Supreme Court’s decision does not bode well. Now this governmental power to spy on Bitcoin transaction data is firmly cemented into law.
