Coin Center has filed a lawsuit against the US Treasury for suspected financial surveillance

11-Jun-2022 By: Simran Mishra

Coin Center has filed a lawsuit against the US Treasury for suspected financial surveillance

Coin Center has filed a lawsuit in federal district court questioning the Treasury Department's execution of Section 6050I's reporting obligation.

Coin Center, a non-profit blockchain advocacy group located in Washington DC, has launched a lawsuit against the US Treasury Department for allegedly including an unlawful change in the disputed infrastructure bill.

Coin Center announced the filing of a lawsuit in federal district court against the Treasury Department, questioning the execution of Section 6050I of the Infrastructure Investment and Jobs Act's reporting obligation. According to the complaint, President Biden and Congress modified a little-known tax reporting rule in 2021. If the amendment is permitted to take effect, ordinary Americans would be subjected to a vast monitoring system.

Individuals and corporations must submit information about all inbound transactions worth $10,000 or more under the 6050I amendment, which includes the sender's name, date of birth, and Social Security number.

The legislation would affect the whole crypto ecosystem, including NGOs that get anonymous donations and nonfungible token (NFT) artists who will have to divulge their clients' personal information to the authorities, according to Coin Center's release.

Coin Center claimed in the first claim of the complaint that the 6050I clause is focused on information about the general public participating in crypto transactions rather than information about third parties.

"Our right of association is the second claim," the corporation continued, citing a Supreme Court rule that prohibits the government from ordering groups to preserve and submit member lists.

Lastly, Coin Center requested cooperation from the cryptocurrency community, noting, "We are contemplating adding other co-plaintiffs to our suit, so if you meet this description and are interested, please get in contact."

Further research indicated regulators' worries about user safety in the ecosystems of decentralized financing (DeFi), stablecoins, decentralized autonomous organizations (DAOs), and crypto exchanges.

WHAT'S YOUR OPINION?