DeFi Education Fund Defends Crypto Privacy Rights in U.S. Court of Appeals
Summary:
DeFi Education Fund (DEF) advocated for consideration of blockchain technology's unique qualities in a U.S. court case to defend cryptocurrency users' privacy rights under the Fourth Amendment. DEF supported James Harper's appeal against the Internal Revenue Service, contesting full access to transaction histories on crypto platforms. This comes after Coinbase had to share the data of 14,355 clients, including Harper's, with the IRS due to a 2017 court mandate. DEF insists the Fourth Amendment be updated to balance law enforcement's investigation powers with an individual's digital financial privacy right.
In a bid to safeguard the confidentiality rights of cryptocurrency users under the Fourth Amendment, DeFi Education Fund (DEF), a predominant organization promoting cryptocurrency, has implored a court in the United States to take into account the unique features of blockchain technology. This occurred on October 20th when DEF submitted their amicus brief to the U.S. Court of Appeals (First Circuit) providing support to the appeal by James Harper, who is contesting the Internal Revenue Service's attempts to gain complete access to transaction histories on crypto platforms. Harper's case emerged when Coinbase, the cryptocurrency exchange, handed over his data, plus that of an additional 14,354 users, to the IRS as per a 2017 court order. This triggered a push for enhanced privacy rights in the digital universe. DEF is keen on using cases like the Harper v. IRS to cement precedents in the industry, especially ones where the privacy of user's financial data is at stake.
DEF's stance is that the Fourth Amendment must be updated to strike a fair balance between police investigation powers and an individual's right to keep their financial affairs private in the digital era. The group explains that past precedents should serve to uphold the degree of confidentiality that existed at the advent of the Fourth Amendment when clashing with contemporary technology. According to DEF, the Fourth Amendment of the U.S. Constitution, protects citizens from unreasonable investigations and seizures by government authorities. In making that point, DEF also referenced the Carpenter v United States case as an argument that the Fourth Amendment limits the government's capability to acquire data from third-party outlets such as Coinbase.
DEF highlighted that since cryptocurrency dealings are trackable on public records, matching real world identities to pseudo addresses is possible. This raises concerns for the privacy of all 14,355 users involved in the Coinbase dispute. DEF explained how the government's request for information affected every aspect of these user's lives by revealing an unprecedented breadth of information. Defending their viewpoint, DEF asserted that the insights gained through this inference far outweigh what traditional banking records can divulge.
The DeFi Education Fund seeks to instruct policymakers on the merits of decentralized finance, and facilitate clear regulations for the DeFi ecosystem. The final verdict in Harper v Werfel and Internal Revenue Services will likely establish a standard for digital privacy rights and law enforcement strategies within U.S.
Published At
10/22/2023 2:13:19 AM
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