Key Takeaways
- Coin Center has won the right to re-try its lawsuit against the IRS.
- The case challenges a rule mandating personal details in Bitcoin transactions.
- The court found three constitutional claims valid for trial, including privacy concerns.
Coin Center, a Bitcoin advocacy think tank, has won the right to re-try its lawsuit against the U.S. Treasury Department and IRS over a controversial tax code amendment.
The rule in question, part of the 2021 Infrastructure Investments and Jobs Act, mandates that individuals conducting Bitcoin transactions over $10,000 disclose personal details like names, Social Security numbers, and home addresses to both parties and the IRS.
Constitutional violation
The organization claims the rule violates several constitutional rights, including privacy and freedom of association.
In June 2022, Coin Center filed a lawsuit, accusing the government of imposing “overbearing surveillance” on Bitcoin users.
While a district court initially dismissed the case on jurisdictional grounds, the U.S. Court of Appeals partially reversed this decision in August 2024.
Circuit Judge Karen Nelson Moore ruled that three of Coin Center’s claims were valid for consideration under the Fourth and First Amendments and Congressional authority.
Judge Moore wrote:
The enumerated-powers claim presents an exceedingly simple, pure legal issue: either Congress exceeded the powers given to it by the Constitution or it did not.
The case has now been remanded for further proceedings.
Coin Center’s Director of Research, Peter Van Valkenburgh, emphasized their commitment to defending privacy, saying:
We’re excited to move forward defending that right on the merits.
