Coin Center files lawsuit against US Treasury for alleged financial spying
The lawsuit alleges that the treasury department's 6050I Section provisioned in the crypto infrastructure bill can violate Americans' financial privacy
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Coin Center, a nonprofit blockchain advocacy group, based in Washington, D.C., has issued a lawsuit against the United States Department of Treasury and Internal Revenue Service for allegedly including an unlawful crypto tax reporting amendment in the contentious infrastructure bill.
Coin Center announced filing a federal district court litigation against the Treasury Department, challenging the enforcement of Section 6050I's reporting mandate within the Infrastructure Investment and Jobs Act.
The lawsuit also stated that "In 2021, President Biden and Congress amended a little-known tax reporting mandate. If the amendment is allowed to go into effect, it will impose a mass surveillance regime on ordinary Americans."
The regulation, which goes into effect in 2024, requires US taxpayers who receive more than $10,000 worth of crypto assets to record the sender's Social Security number and other personal information such as their full name and date of birth.
The clause was one of several in last year's infrastructure law, including a contentious cryptocurrency tax reporting requirement for brokers. Although the provision was eventually unsuccessful, it sparked a significant industry outcry.
