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- Circle now allows lawful firearm purchases with USDC.
- Policy aligns digital payments with U.S. law and constitutional rights.
- Revision responds to industry criticism and federal stablecoin legislation.
Stablecoin issuer Circle has revised its Terms of Service, now permitting lawful firearm purchases using its USDC token. The update removes a previous blanket ban on transactions involving firearms, ammunition, and other weapons. According to Circle, the change ensures that USDC can be used for transactions protected under U.S. law, responding to criticism from firearms industry advocates.
The company confirmed the policy shift in a statement to the National Shooting Sports Foundation (NSSF), noting that USDC “may be used for the lawful purchase and sale of firearms.” The organization praised the move, framing it as an acknowledgment that digital payment platforms should not impede constitutionally protected commerce.
Lawmakers and Industry React
The revision drew immediate attention from political and industry stakeholders. Senator Bill Hagerty of Tennessee hailed it as a “victory against the weaponization of the financial system,” emphasizing the importance of preventing financial discrimination through indirect regulatory measures.
Senator Cynthia Lummis of Wyoming echoed support, highlighting that the update aligns digital payment policies with existing laws, safeguarding both financial access and constitutional rights. Advocacy groups, including Americans for Tax Reform (ATR), had previously criticized Circle for limiting USDC use for lawful weapons-related transactions, arguing that private companies should not dictate legal consumer purchases.
The discussion around Circle’s update coincides with broader federal efforts to regulate stablecoins, including the GENIUS Act, which seeks to ensure neutral, compliant digital payment networks.
From Ban to Compliance: What Changed
Under the previous Terms of Service, Circle prohibited USDC transactions for “weapons of any kind,” which effectively blocked legal firearm commerce. The revised framework now restricts only transactions that violate federal or state law. This clarification allows lawful firearm sales while maintaining Circle’s commitment to anti-money-laundering and sanctions compliance.
Also Read: Circle Arc: The Stablecoin Chain Changing Global Payments
Industry observers note that the move underscores the sensitivity of centralized stablecoin issuers to domestic political debates. Firearm dealers who faced account restrictions or blocked payments in the past may now have clearer access to digital finance tools, marking a notable step in integrating stablecoins into lawful commerce.
Circle’s updated USDC terms mark a significant policy shift, balancing compliance with legal frameworks and addressing concerns from the firearms industry. The move demonstrates how digital finance companies must navigate regulatory, political, and constitutional considerations while expanding access to lawful markets.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
