Circle Reverses Policy, Allows Lawful Firearm Purchases with USDC

Circle, the issuer of the USDC stablecoin, reversed its previous policy that explicitly banned the use of USDC for purchasing firearms, ammunition, and related accessories. The initial ban, discovered in October 2025, drew immediate criticism from gun rights advocates and Republican lawmakers, who argued it constituted financial discrimination contradicting principles like President Trump's Executive Order on Fair Banking. Circle's updated terms now only prohibit the purchase of weapons "in contravention of applicable laws," effectively permitting legal firearm purchases with USDC for US-based users.

Republican senators, including Cynthia Lummis and Bill Hagerty, praised the reversal as a stand against discrimination targeting lawful gun owners. The National Shooting Sports Foundation (NSSF) also welcomed the change. This policy shift occurs while stablecoins, following the passage of the GENIUS Act in July 2025, are becoming more integrated into the US financial system, with USDC market value significantly increasing. The controversy highlights broader concerns that stablecoin issuers might impose restrictions beyond legal requirements on other legally operating sectors, like cannabis businesses, demonstrating that corporate policies in the digital currency landscape are subject to intense political and public pressure.

(Source：Brave New Coin)