Circle updates USDC terms to regulate firearm transactions

The issuer of the USDC stablecoin, Circle, has amended its policies to clarify rules regarding prohibited transactions, particularly concerning the purchase of firearms and weapons. The updated terms empower Circle to monitor and potentially block transactions related to firearms, ammunition, explosives, and other weapons. However, the new terms explicitly state that these restrictions only apply to weapon transactions that violate applicable laws, meaning firearms obtained legally can be purchased using USDC. This update has sparked discussions between users and lawmakers, with some praising Circle's decision as a defense of Second Amendment rights. Wyoming Senator Cynthia Lummis expressed support, stating that Circle aligns with existing legal requirements, supports constitutional rights, and prevents the financial system from being used against law-abiding gun owners. This move comes as U.S. President Donald Trump signed the GENIUS Act to regulate payment stablecoins, with President Trump signing the act in July, prompting ongoing discussions about U.S. stablecoin regulation. Circle's decision to update its terms may reflect feedback from lawmakers and supporters of the Second Amendment, and could also be aimed at strengthening ties with the Trump administration and Republican lawmakers. Key figures in the stablecoin industry, including Circle CEO Jeremy Allaire and Tether CEO Paolo Ardoino, attended the signing ceremony for the GENIUS Act. As the regulatory environment for stablecoins continues to evolve, Circle's policy update highlights the intersection of fintech and American constitutional rights.