Crypto News: Circle Updates Its Terms Of Service To Allow “Legal” Purchase Of Certain Weapons

Circle updates USDC terms to permit legal firearm purchases, sparking debate on crypto policy and Second Amendment rights.

Circle, the company behind the USDC stablecoin, has just revised its terms of service to allow users to make “legal firearm purchases” with USDC. 

The update, announced this week, clarifies that customers can use the digital dollar token for buying and selling firearms, ammunition, and related items. This is as long as the transactions comply with applicable laws.

This stands as a major change in Circle’s policy, which previously restricted the use of USDC for weapons-related transactions.

Lawmakers Praise Circle’s Move on USDC Firearm Purchases

The revision has been met with approval from several US lawmakers who viewed the earlier restrictions as an overreach by private financial firms. Wyoming Senator Cynthia Lummis praised the company’s decision.

She said that the updated terms “defend constitutional rights and ensure financial systems can’t be weaponised against law-abiding gun owners.”

Tennessee Senator Bill Hagerty also welcomed the change. He described it as “a reversal of Choke Point-inspired mechanisms” that had allowed financial platforms to exclude lawful industries without public debate.

Gun Rights Groups Celebrate the Decision

The National Shooting Sports Foundation (NSSF), which represents firearm manufacturers and retailers, confirmed that Circle reached out to clarify its stance.

In a statement to the group, a company representative said, “We have not and will not deny the use of USDC for legally permissible transactions involving firearms.”

The NSSF hailed the decision as a victory for gun owners and added that “freedom cannot survive if your financial tools are turned against you and your rights.”

The group had raised concerns in October when Circle’s earlier terms appeared to prohibit any weapons-related transactions. The previous language prevented any purchases of “weapons of any kind, including firearms, ammunition, knives or explosives.”

Political and Industry Context

The timing of Circle’s update is in line with a general push for stablecoin regulation in the United States. In July, President Donald Trump signed the GENIUS Act into law and established a framework for payment stablecoins. 

The signing ceremony included top executives from issuers like Circle CEO Jeremy Allaire and Tether CEO Paolo Ardoino.

Circle’s decision to clarify its terms may be a signal of both legal alignment with this new framework and an effort to strengthen its position with US policymakers. Some observers also believe that it helps the company to distance itself from accusations of political bias.

Earlier this year, Americans for Tax Reform published a report criticising Circle’s previous restrictions. 

The report questioned whether private firms should be able to decide which legal purchases consumers can make. It also pointed out that Allaire had donated to Rep. Jake Auchincloss, a Democrat known for supporting gun-control measures.

That report triggered a wave of debate on social media, with gun rights advocates and lawmakers urging the company to amend its terms.

Stablecoins Under Greater Scrutiny

While the focus has been on Circle’s policy, the general stablecoin sector continues to improve under scrutiny. Regulators and legislators have been debating how to balance innovation with compliance and user protections.

Stablecoins like USDC, pegged to the US dollar, are widely used in crypto trading and payments. However, their role in everyday transactions including politically sensitive areas like firearm sales continues to be a hot topic.

Critics are worried that crypto could be used to bypass financial regulations, while supporters argue that stablecoins make payment systems more efficient and inclusive.

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