Coin Center statement on IRS Coinbase order.

While the court granted a narrowed version of the IRS’s original request for Coinbase customer data, we remain deeply unsatisfied with the lack of justification provided by the IRS. Without better rationale for why these specific transactions were suspect, a similarly sweeping request could be made for customer data from any financial institution. It sets a bad precedent for financial privacy. This is a perfect example of why clarity in the tax treatment of cryptocurrencies is needed, such as reporting guidance the IRS would be directed to issue under the recently introduced bipartisan Cryptocurrency Tax Fairness Act sponsored by Reps. Schweikert and Polis.