Circle Allows Legal Firearm Purchases With USDC After Regulatory Pressure

• Circle updated USDC terms to allow legal firearm purchases, ending its previous ban on weapon transactions.
• The policy change aligns with federal regulations and industry advocacy against financial discrimination.
• New regulatory clarity from the GENIUS Act encourages adoption and shapes the future of stablecoins in payments.

Circle Internet Group has reversed its USDC policy, now allowing legal firearm purchases that comply with applicable laws. The decision follows industry advocacy and aligns with federal regulatory frameworks targeting financial discrimination.

This policy update comes during increasing scrutiny of payment platforms accused of restricting access for lawful gun merchants. The change reflects the GENIUS Act’s passage, which created a federal framework for dollar-backed stablecoins in the United States.

USDC Terms Reflect Legal Firearm Transactions {#h-usdc-terms-reflect-legal-firearm-transactions}

Previously, Circle’s USDC terms prohibited all weapons purchases, including firearms. This approach led to criticism from the National Shooting Sports Foundation (NSSF), which called the rule “financial discrimination.”

The NSSF argued that such bans unfairly penalized lawful gun businesses and owners operating within constitutional rights.

Responding to this advocacy and public attention, Circle revised its terms to prohibit weapon sales only “in contravention of applicable laws.” Circle representatives confirmed to the NSSF that the updated policy allows USDC for legal firearm and accessory purchases.

USDC had a market capitalization of $74 billion and a 25.5% stablecoin market share by September 2025, making this change significant for digital payments.

The NSSF praised the policy shift as a victory against ideological restrictions. The organization, however, stated it would “trust, but verify” Circle’s commitment, emphasizing ongoing vigilance against financial discrimination.

Senator Cynthia Lummis supported Circle’s decision. As shared in a post on X, Lummis said the move defends constitutional rights and prevents financial system weaponization against law-abiding gun owners, illustrating growing bipartisan momentum to protect lawful commerce from payment platform gatekeeping.

Regulatory Landscape: Executive Order and Stablecoin Legislation {#h-regulatory-landscape-executive-order-and-stablecoin-legislation}

Circle’s reversal is linked to President Trump’s executive order “Guaranteeing Fair Banking for All Americans” issued on August 7, 2025. The order targets “debanking,” where financial firms deny services for political views or lawful but controversial businesses, specifically mentioning the firearms sector.

The order requires regulators to replace “reputation risk” with objective, risk-based standards and to review historical cases of debanking. Institutions must notify and reinstate clients denied services for political or lawful business reasons.

A 180-day deadline was set for compliance.

Additionally, the GENIUS Act, signed July 18, 2025, established clear federal rules for stablecoin issuers. It set standards for authorization and exempted issuers from certain bank capital requirements. This act is viewed as a turning point for US stablecoin policy and has encouraged more adoption by creating regulatory clarity.

These regulatory developments place new political and legal pressures on payment firms to avoid imposing ideological bans. Circle’s decision reflects this changing landscape.

Broader Impacts for Stablecoins and Payment Systems {#h-broader-impacts-for-stablecoins-and-payment-systems}

Circle’s update signals the growing influence of stablecoins in global payments. USDC circulation rose over 78% in 2025, with monthly transactions reaching $1 trillion, according to Circle’s reports. These numbers highlight stablecoins’ transition from niche assets to mainstream payment solutions.

The firearms policy revision may influence how other stablecoin issuers define what’s allowed. Some observers worry that USDC’s involvement in politically sensitive issues could complicate compliance outside the US, where attitudes differ sharply. Others believe this fosters censorship resistance and maintains neutrality in digital finance.

NSSF framed this move as part of a larger trend: payment and financial firms are moving away from ideological restrictions. The organization warned digital-first economies make payment firm policies crucial to industry access, underscoring what’s at stake for financial freedom.

Circle’s decision comes as other firms, like BitPay, face criticism for restricting lawful gun commerce. Advocacy groups like the NSSF are intensifying efforts to reverse financial discrimination labeled as risk management.

The stablecoin sector is poised for growth. Daily transaction volumes could reach $250 billion within three years, as reported by McKinsey. Stablecoins settled $5.7 trillion in global value during 2024, positioning them to rival traditional networks like Visa. Circle’s policy change may shape how issuers navigate regulatory and political pressures while seeking a larger market share.

Whether Circle’s reversal sets a standard for other crypto firms remains uncertain. The future will show if payment neutrality becomes the industry norm or if stablecoin issuers must continue balancing regulatory requirements, constitutional rights, and the needs of global markets.