Supreme Court Opened Crypto Wallets To Surveillance
The post Supreme Court Opened Crypto Wallets To Surveillance appeared on BitcoinEthereumNews.com. Opinion by: Vikrant Sharma, CEO of Cake Labs When the United States Supreme Court refused to hear Harper v. Faulkender on June 30, 2025, the court essentially endorsed the Internal Revenue Service’s sweeping “John Doe” summonses for cryptocurrency records. By letting a lower court ruling stand, the court confirmed that the century-old third-party doctrine stands for public ledgers just as it does for bank statements. Under the third-party doctrine, information voluntarily shared with another party, like a bank or blockchain, is no longer protected by the Fourth Amendment. When data leaves a person’s direct control, constitutional privacy protections vanish. For onchain transactions, whether permanently etched into any blockchain network, virtually every payment is now fair game for warrant-free scrutiny. Prosecutors, tax agents and, by extension, any adversary with the time to sift through open data can now peruse at their leisure anyone’s financial information. Analytics profiteers weaponize “radical transparency” No entity has cashed in faster than blockchain forensics vendors. The global analytics market is projected to hit $41 billion this year, nearly double 2024’s total. Their clustering heuristics already flag over 60% of illicit stablecoin transfers, which — on the surface — is a remarkable statistic, but it also demonstrates how little pseudonymity remains. The pitch to regulators becomes irresistible: “Pay us, and every wallet becomes a glass bank.” Yet the same dragnet slurps up innocent data into eternal spreadsheets bursting at the seams with payroll, medical care and political tithe data. That data becomes constantly ripe for leaks or subpoenas. Congress will not ride to the rescue. Only cryptographic engineering can close the breach until lawmakers reinvent privacy for the digital century. Some Bitcoin privacy methods let you publish a static receiving identifier while generating distinct, unlinkable onchain outputs that frustrate common analytical heuristics. Related: US Supreme Court will…
The post Supreme Court Opened Crypto Wallets To Surveillance appeared on BitcoinEthereumNews.com.
Opinion by: Vikrant Sharma, CEO of Cake Labs When the United States Supreme Court refused to hear Harper v. Faulkender on June 30, 2025, the court essentially endorsed the Internal Revenue Service’s sweeping “John Doe” summonses for cryptocurrency records. By letting a lower court ruling stand, the court confirmed that the century-old third-party doctrine stands for public ledgers just as it does for bank statements. Under the third-party doctrine, information voluntarily shared with another party, like a bank or blockchain, is no longer protected by the Fourth Amendment. When data leaves a person’s direct control, constitutional privacy protections vanish. For onchain transactions, whether permanently etched into any blockchain network, virtually every payment is now fair game for warrant-free scrutiny. Prosecutors, tax agents and, by extension, any adversary with the time to sift through open data can now peruse at their leisure anyone’s financial information. Analytics profiteers weaponize “radical transparency” No entity has cashed in faster than blockchain forensics vendors. The global analytics market is projected to hit $41 billion this year, nearly double 2024’s total. Their clustering heuristics already flag over 60% of illicit stablecoin transfers, which — on the surface — is a remarkable statistic, but it also demonstrates how little pseudonymity remains. The pitch to regulators becomes irresistible: “Pay us, and every wallet becomes a glass bank.” Yet the same dragnet slurps up innocent data into eternal spreadsheets bursting at the seams with payroll, medical care and political tithe data. That data becomes constantly ripe for leaks or subpoenas. Congress will not ride to the rescue. Only cryptographic engineering can close the breach until lawmakers reinvent privacy for the digital century. Some Bitcoin privacy methods let you publish a static receiving identifier while generating distinct, unlinkable onchain outputs that frustrate common analytical heuristics. Related: US Supreme Court will…
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