The U.S. Supreme Court declined to hear a critical case that could have impacted the obligations of crypto exchanges like Coinbase in complying with government requests for user data. This decision is a setback for privacy advocates and the crypto industry, as many had hoped the case would address the applicability of the Fourth Amendment to digital financial data. This case, known as Harper v. Faulkender, asked the court to consider whether the long-standing third-party doctrine—allowing the government to access records from service providers without a warrant—should apply to crypto transaction data. In the past, the Supreme Court recognized the need for a warrant for certain cellphone records, raising hopes for a similar ruling concerning cryptocurrency. However, the Court's refusal to hear the case solidifies the status quo, allowing government agencies to continue accessing user data from exchanges. The Trump administration supported these actions, emphasizing the importance of identifying tax evasion among crypto users.

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