Circle Updates USDC Terms to Allow Legal Firearm Purchases
Circle has updated its USDC stablecoin terms of service, removing a blanket ban on weapons to allow lawful firearm and ammunition purchases using USDC. The revised policy, effective Nov. 5, clarifies that transactions for firearms and related items are permitted when they comply with applicable laws. Circle reserves the right to monitor and block any transactions that breach its terms, including those that facilitate illegal or high-risk activities.
Lawmakers including Senators Cynthia Lummis and Bill Hagerty, along with firearms industry group NSSF, praised the change as a defense of Second Amendment rights and an end to “Choke Point” restrictions. By aligning the USDC policy with constitutional protections and the new GENIUS Act framework for payment stablecoins, Circle aims to strengthen its regulatory standing in the US.
The update may boost USDC’s utility by enabling users to make legal firearm purchases, reinforcing the stablecoin’s political neutrality and potentially increasing user confidence and adoption.
Bullish
The update to the USDC stablecoin terms enhances its utility by allowing legal firearm purchases, which can drive demand and adoption among users. By aligning with regulatory frameworks and defending Second Amendment rights, Circle reduces regulatory uncertainty and signals political neutrality. This positive sentiment is likely to support increased USDC trading volumes and market confidence in both the short and long term.