Circle Changes Policy, Allows Users to Buy Certain Weapons with USDC

Stablecoin issuer Circle has updated its policy for one of its tokens to clarify the rules around prohibited transactions, explicitly addressing the use of firearms and legally obtained weapons.

Crypto sleuths and reports this week noted that Circle had updated its terms for its USDC (USDC) stablecoin. The terms in particular said that the platform had the “right to monitor and, if appropriate, block or otherwise prevent transactions” related to the purchase of firearms, ammunition, explosives and other weapons.

However, users noted that Circle had updated the terms to include weapons “in violation of applicable laws,” suggesting that users based in the United States and others could legally purchase firearms using the stablecoin.

It is unclear how the platform could have enforced such restrictions before the change, or if it had been in place since the USDC stablecoin was launched in 2018.

Cointelegraph reached out to a Circle representative for comment, but had not received a response at the time of publication.

Related: Circle’s Arc attracts the first stablecoin experiment backed by South Korea

Some American lawmakers and gun advocates praised Circle’s decision in defense of Second Amendment rights — the provision in the country’s Bill of Rights that allows citizens to “keep and bear arms.” In a statement published at X on Wednesday, Wyoming Senator Cynthia Lummis said:

“After discussions [with] Circle, I’m glad they now allow the legal purchase of firearms using their stablecoin. By aligning their terms of service [with] existing legal requirements, Circle defends constitutional rights [and] ensures that financial systems cannot be weaponized against law-abiding gun owners.”

Stablecoin Regulation in the United States under Donald Trump

It is unclear whether Circle’s move was in response to feedback from lawmakers and Second Amendment advocates or an attempt to deepen its ties with US President Donald Trump and Republicans, who passed a bill to regulate payment stablecoins in July, that is, the GENIUS Act.

Representatives from some of the largest stablecoin issuers, including Circle CEO Jeremy Allaire and Tether CEO Paolo Ardoino, attended a signing ceremony for the legislation.