TLDR
- Circle changed its USDC stablecoin terms of service to allow users to buy firearms and weapons that comply with applicable laws
- The previous policy banned transactions involving “weapons of any kind” but now specifies only those “in contravention of applicable laws” are prohibited
- The change came after criticism from gun rights advocates and the National Shooting Sports Foundation who called it discrimination against lawful commerce
- Republican senators including Cynthia Lummis and Bill Hagerty praised the decision as protecting Second Amendment rights
- Circle CEO Jeremy Allaire and other stablecoin leaders attended the signing ceremony for the GENIUS Act stablecoin legislation in July 2025
Stablecoin issuer Circle has updated its terms of service for USDC to permit legal firearm purchases. The company previously prohibited all weapons transactions using its token.
The new policy language now bans only weapons purchases “in contravention of applicable laws.” This change means US-based users can legally buy firearms with USDC. The modification applies to firearms, ammunition, explosives and other weapons.
After discussions w/ Circle, I'm glad they now allow legal firearm purchases using its stablecoin. By aligning its terms of service w/ existing legal requirements, Circle defends constitutional rights & ensures financial systems can't be weaponized against law-abiding gun owners. pic.twitter.com/zQvxAD8G2i
— Senator Cynthia Lummis (@SenLummis) November 5, 2025
Circle confirmed the policy shift to the National Shooting Sports Foundation this week. The NSSF is a trade association representing gun manufacturers and retailers. A Circle spokesperson told the organization that USDC may be used for lawful firearms purchases protected under the Second Amendment.
The company stated it has not and will not deny USDC use for legally permissible firearms transactions. The updated terms appeared on Circle’s website this week. It remains unclear when the original restrictions were implemented or how they were enforced.
The policy change followed pressure from gun rights advocates. Americans for Tax Reform published a report highlighting Circle’s ban on USDC transactions involving weapons of any kind. The organization questioned whether private companies should control which legal purchases consumers can make.
The NSSF warned about Circle’s stance last month on social media. The group said freedom cannot survive if financial tools are turned against Second Amendment rights. They called the original policy a form of discrimination against lawful commerce.
Political Response and Stablecoin Regulation
Republican senators who recently passed stablecoin legislation responded to the controversy. Senator Bill Hagerty of Tennessee authored the GENIUS Act stablecoin framework that President Donald Trump signed in July. He called the original policy a reversal of mechanisms to achieve partisan goals.
Wyoming Senator Cynthia Lummis posted on social media Wednesday about discussions with Circle. She said the company now allows legal firearm purchases using its stablecoin. Lummis stated that aligning terms of service with existing legal requirements defends constitutional rights.
The timing of Circle’s policy change coincides with new stablecoin regulation in the US. Congress passed the GENIUS Act to regulate payment stablecoins earlier this year. Circle CEO Jeremy Allaire attended the signing ceremony for the legislation.
Tether CEO Paolo Ardoino and representatives from other major stablecoin issuers also attended the signing. The law establishes a framework for stablecoin oversight in the United States.
Critics argue the policy change shows stablecoins are subject to political influence. Kadan Stadelmann, Chief Technology Officer at Komodo, told reporters that a private US company cannot issue a neutral stablecoin. He said Circle’s reversal suggests stablecoins are at the whims of politicians.
Stadelmann added that centralized stablecoin issuers serve domestic agendas. He warned this puts users at risk of surveillance and censorship. The concerns echo broader debates about crypto neutrality versus regulatory compliance.
Circle has not publicly commented on whether the change resulted from lawmaker feedback or business strategy. The company did not respond to requests for comment about the policy update timing.
