Circle Revises Terms to Permit Lawful Firearm Purchases With USDC

Circle’s policy change allows USDC use for legal firearm sales, reversing its previous blanket weapons ban.

Lawmakers and advocacy groups view the update as a step toward preventing financial discrimination in digital payments.

The policy revision follows recent U.S. stablecoin legislation under the GENIUS Act, setting clearer regulatory boundaries.

Major stablecoin issuer Circle has revised its Terms of Service to allow lawful firearm purchases using its USDC token. The change follows criticism from firearms industry advocates who argued that Circle’s earlier restrictions unfairly limited legal commerce. The new terms remove a previous ban that prohibited transactions involving any kind of weapon, including firearms, ammunition, and explosives

Circle confirmed the revision this week, stating that the updated language ensures USDC can be used for lawful transactions protected under U.S. law. According to Circle’s statement shared with the National Shooting Sports Foundation (NSSF), the company clarified that USDC “may be used for the lawful purchase and sale of firearms.” The organization welcomed the update, describing it as a recognition that digital payment systems should not restrict constitutionally protected activity.

Political and Industry Reactions

The policy revision drew immediate attention from lawmakers and industry representatives. Senator Bill Hagerty of Tennessee called the move a “victory against the weaponization of the financial system,” linking it to efforts to prevent financial discrimination through regulatory backchannels

Senator Cynthia Lummis of Wyoming also expressed support, stating that aligning digital payment policies with existing laws protects both financial access and constitutional rights. Earlier, several advocacy groups, including Americans for Tax Reform (ATR), had raised concerns over Circle’s prior restrictions

ATR published a report identifying Circle’s policy as a ban on USDC use for any weapon-related purchases. The group argued that private financial companies should not decide which legal products consumers may buy. That report sparked discussion among legislators who recently advanced federal stablecoin legislation.

Previous Policy and New Framework

Before the change, Circle’s policy prohibited the use of USDC for “weapons of any kind,” encompassing firearms and related accessories. The updated terms now specify that the restriction applies only to transactions violating applicable laws. This clarification effectively permits lawful firearm sales conducted under state and federal regulations

In addition, Circle emphasized that it continues to monitor transactions for compliance with anti-money-laundering and sanctions rules. The update follows the GENIUS Act, a federal framework for stablecoins signed into law in July. Lawmakers supporting that legislation have highlighted the importance of keeping digital payment networks neutral and compliant with existing legal standards.

Industry experts note that this event underscores how centralized stablecoin issuers remain exposed to domestic political debates. The revision also shows how corporate policies in digital finance can influence access to lawful markets. Some analysts point out that firearm dealers using digital assets have previously faced account restrictions or payment blocks, raising questions about neutrality in financial technology.