Circle, the company behind the U.S. dollar-backed stablecoin USDC, announced on November 5 that it will update its Prohibited Transactions Policy to permit the use of USDC for the purchase of firearms.
The move marks a significant shift in policy, aligning the company’s terms of service with U.S. constitutional protections under the Second Amendment.
Policy Revision Details
Previously, Circle’s policy explicitly banned the use of USDC for buying “weapons of any kind.” The revised language now clarifies that transactions involving the lawful purchase and sale of firearms are permitted under U.S. law. The company stated that this change reflects its commitment to ensuring that financial technologies are not used to restrict constitutionally protected rights.
In a statement sent to the National Shooting Sports Foundation (NSSF), Circle emphasized that its decision is rooted in upholding both financial freedom and legal compliance.
“Circle has always held that to the right of lawful, the use of money should be free,” the company stated. “This includes lawful purchases of firearms in the United States, which is a Second Amendment-protected right.”
Industry and Political Reaction
The update drew immediate attention from policymakers. Senator Cynthia Lummis (R-WY), a prominent supporter of digital assets and constitutional rights, publicly praised the move on November 6.
“By aligning its terms of service with existing legal requirements, Circle defends constitutional rights and ensures financial systems can’t be weaponized against law-abiding gun owners,” Lummis said in a post on X.
The announcement highlights an ongoing debate about how payment processors and financial technology firms should handle transactions involving firearms. Critics of financial deplatforming have argued that private firms should not impose restrictions beyond what the law requires.
Precedent for Fintech and Crypto
With this policy update, Circle has positioned itself as one of the first major stablecoin issuers to explicitly permit crypto-based transactions for legal firearm purchases in the U.S. This sets a precedent for other fintech and crypto firms navigating the intersection of financial regulation and constitutional rights.