Circle, the issuer of the USDC stablecoin, reversed its ban on firearm-related transactions following intense backlash from Second Amendment advocates and conservative groups. The company clarified that legally permissible firearm purchases will now be supported.
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WASHINGTON, DC (3-minute read) — Circle, the cryptocurrency firm behind the USDC stablecoin, has officially reversed its previous policy banning firearm-related transactions after facing mounting criticism from gun rights advocates and lawmakers.
USDC, often referred to as a digital dollar due to its 1:1 peg with the U.S. dollar, is the second-largest stablecoin in the world with a market capitalization of approximately $75 billion. The company had previously included language in its terms of service that gave it the authority to block transactions involving firearms, ammunition, and related accessories, even when such transactions were legal under U.S. law.
The updated policy language, first spotted in late October, alarmed gun rights organizations, including Americans for Tax Reform and the National Shooting Sports Foundation (NSSF). They accused Circle of politically motivated discrimination, pointing to CEO Jeremy Allaire’s past donations to Democratic politicians who have supported gun control legislation.
In a public statement following growing pressure, Circle announced it had “clarified” its terms to allow for the lawful purchase and sale of firearms using USDC. The company emphasized it does not, and will not, restrict the use of its stablecoin for legally permissible transactions involving firearms.
The NSSF acknowledged Circle’s swift response and welcomed the update. The group, representing the firearms industry, noted that the crypto sector has also experienced similar regulatory discrimination, making this policy reversal a significant step toward fair treatment across industries.
This development marks a pivotal moment where financial technology intersects with constitutional rights. It also highlights ongoing concerns about ideological bias in financial services, especially as cryptocurrencies become more integrated into everyday transactions.
Why Firearm Transactions in Crypto Matter
In the age of digital payments, restricting access to lawful purchases, especially those tied to constitutional rights, raises red flags. Many in the self-defense and firearms communities see crypto as a financial alternative that bypasses traditional institutions, which have increasingly shown willingness to de-platform certain users or industries.
Safety Tip: Always verify the legality of any firearm-related transaction in your state before using cryptocurrency, and ensure any digital wallet or platform you use complies with both firearm and financial regulations.