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Wednesday Nov 5 2025 20:20
2 min
Circle, the issuer of the USDC stablecoin, has recently updated its policy to clarify the rules surrounding prohibited transactions, specifically those involving the purchase of legally obtained firearms and other weapons. This development highlights the complex interplay between cryptocurrencies and traditional regulations.
Crypto sleuths and recent reports noted that Circle updated its terms for its USDC. The revised terms now state that the platform reserves 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 contravention of applicable laws,” suggesting that US-based users and others could legally purchase firearms using the stablecoin. It remains unclear how the platform could have enforced such restrictions prior to the change, or if they had been in the terms since the USDC stablecoin was launched in 2018.
Some US lawmakers and gun rights 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 posted to X on Wednesday, Wyoming Senator Cynthia Lummis said: “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.”
It remains unclear whether Circle’s move was in response to feedback from lawmakers and Second Amendment proponents or an attempt to deepen its ties to US President Donald Trump and Republicans, who passed a bill to regulate payment stablecoins in July, i.e., the GENIUS Act. Representatives from some of the biggest stablecoin issuers, including Circle CEO Jeremy Allaire and Tether CEO Paolo Ardoino, attended a signing ceremony for the legislation.
Overall, this update to Circle's USDC policy represents a significant development in the intersection of cryptocurrencies and regulation. The industry will have to monitor how this new policy is implemented and its impact on the use of stablecoins for transactions across a wide range of industries.
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