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Circle Now Permits Legal Firearm Purchases Using USDC Stablecoin

#Circle has updated its $USDC terms of service to permit legal firearm purchases, clarifying previously ambiguous language about weapons transactions. The #stablecoin issuer now prohibits only weapons purchases "in contravention of applicable laws."

Previous terms appeared to block all firearms, ammunition, and explosives transactions without legal distinction. The updated language on Circle's website suggests users can purchase firearms with $USDC where legally permitted.

Wyoming Senator Cynthia Lummis praised the change on X, stating she's glad Circle now allows legal #firearm purchases after discussions with the company. She said aligning terms with legal requirements defends constitutional rights and prevents financial systems from being weaponized against law-abiding gun owners.

The policy update coincides with increased stablecoin regulation under President #Trump's administration. Republicans passed the #GENIUSAct in July to regulate payment stablecoins.

Circle CEO Jeremy Allaire and Tether CEO Paolo Ardoino attended the GENIUS Act signing ceremony. The legislation established a regulatory framework for payment stablecoins in the United States.

Whether Circle's move responded to lawmaker feedback or aimed to strengthen ties with the Trump administration remains unclear. The company has not commented on the policy change at time of publication.

It's uncertain how Circle could have enforced the previous restrictions or if they existed since $USDC launched in 2018.