Circle’s Policy Revision on Stablecoin Transactions
In a recent policy revision, stablecoin provider Circle has clarified its stance on transactions involving weapons, specifically allowing the use of its USDC stablecoin for legal purchases of firearms and related items. This update comes amid a growing scrutiny from crypto analysts and media, who have noted that the terms now explicitly grant Circle the authority to oversee and potentially block transactions associated with firearms, ammunition, explosives, and other weaponry.
New Terms and Compliance
The revamped terms include a notable distinction that permits weapon-related purchases as long as they comply with applicable laws, signaling that US customers—and perhaps others—could legally utilize USDC in transactions for firearms. However, it raises questions about how Circle enforced these rules prior to this change, and whether similar stipulations were included when USDC was initially launched in 2018. Cointelegraph reached out to a Circle spokesperson for further clarification but did not receive a response by the time this article was published.
Reactions from Gun Rights Supporters
Supporters of gun rights, including various US lawmakers, have expressed approval over Circle’s new approach, citing it as a reinforcement of Second Amendment protections. Wyoming Senator Cynthia Lummis took to social media platform X to commend Circle, stating:
“After discussions [with] Circle, I’m glad they now allow legal firearm purchases using its stablecoin. By aligning its terms of service [with] existing legal requirements, Circle defends constitutional rights [and] ensures financial systems can’t be weaponized against law-abiding gun owners.”
Strategic Implications of the Policy Change
Interestingly, it remains uncertain whether Circle’s latest policy change was primarily driven by legislative feedback, or if it marks a strategic alignment with the recent political climate, including steps taken to regulate stablecoins under the administration of former President Trump. In July, the GENIUS Act was passed, focusing on the regulation of payment stablecoins, which saw participation from key figures in the industry, including Circle’s CEO Jeremy Allaire and Paolo Ardoino, the CEO of Tether, during the bill’s signing ceremony.
