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Circle changes policy, allows users to buy certain weapons with USDC
Stablecoin issuer Circle updated its policy for one of its tokens to clarify rules around prohibited transactions, explicitly addressing the use of legally obtained firearms and weapons.
Crypto sleuths and reports from this week noted that Circle had updated its terms for its USDC (USDC) stablecoin. The terms specifically stated that the platform had the “right to monitor and, if appropriate, block or otherwise prevent transactions” related to the purchase of firearms, ammunition, explosives and other weapons.
However, users noted that Circle had updated the terms to include weapons “in contravention of applicable laws,” suggesting that US-based users and others could legally purchase firearms using the stablecoin.
Cointelegraph reached out to a Circle representative for comment, but had not received a response at the time of publication.
Related: Circle’s Arc attracts South Korea’s first won-backed stablecoin experiment
Some US lawmakers and gun advocates praised Circle’s decision in defense of Second Amendment rights — the provision in the country’s Bill of Rights that allows citizens to “keep and bear arms.” In a statement posted to X on Wednesday, Wyoming Senator Cynthia Lummis said:
Stablecoin regulation in the US under Donald Trump
It’s unclear whether Circle’s move was in response to feedback from lawmakers and Second Amendment proponents or an attempt to deepen its ties to US President Donald Trump and Republicans, who passed a bill to regulate payment stablecoins in July, i.e., the GENIUS Act.
Representatives from some of the biggest stablecoin issuers, including Circle CEO Jeremy Allaire and Tether CEO Paolo Ardoino, attended a signing ceremony for the legislation.
Magazine: Good luck suing crypto exchanges, market makers over the flash crash