Circle Revises Policy to Permit Legal Firearm Transactions Using USDC

• Circle reverses prior USDC firearm ban, aligning its terms with U.S. legal protections.
• Lawmakers praise the move as ending “Operation Choke Point”–style financial restrictions.
• Policy shift renews debate over financial neutrality and private control of lawful commerce.

Circle Internet Financial has updated its Terms of Service to permit the use of USD Coin (USDC) in lawful firearm transactions, reversing language that previously banned such activity. The clarification follows criticism from lawmakers and advocacy groups that accused the company of restricting constitutionally protected commerce.

A Circle spokesperson told the National Shooting Sports Foundation (NSSF) that the revision affirms users’ rights under existing U.S. law. “Circle has clarified our Terms to reflect that USDC may be used for the lawful purchase and sale of firearms, as protected under the Second Amendment,” the company said. “We have not and will not deny the use of USDC for legally permissible transactions involving firearms.”

Political Response and Legislative Context

The decision drew swift reactions on Capitol Hill. Republican lawmakers praised the policy shift as a reversal of “Operation Choke Point”–style financial practices, referring to prior efforts by regulators and banks to restrict access to financial services for lawful but politically sensitive industries.

Sen. Bill Hagerty (R-TN), who authored the GENIUS Act stablecoin framework signed into law in July, told Crypto in America that the change “reverses mechanisms designed to end run the legislative process and achieve partisan goals through financial restrictions.” Sen. Cynthia Lummis (R-WY), a co-sponsor of the act, added that aligning the policy with legal standards “defends constitutional rights and ensures the financial system cannot be weaponized against law-abiding gun owners.”

Industry and Advocacy Reactions

The update follows an October 14 report by Americans for Tax Reform (ATR) that criticized Circle’s earlier policy banning transactions related to “weapons of any kind.” The group’s article, titled “You Can’t Buy a Gun With Dem Donor’s Stablecoin,” alleged that Circle’s stance reflected political bias and raised concerns about private firms deciding what constitutes acceptable spending. ATR’s report also noted campaign donations by Circle CEO Jeremy Allaire to Democratic lawmakers, including Rep. Jake Auchincloss (D-MA), who has sponsored firearm-related legislation.

The NSSF, which represents U.S. gun manufacturers and retailers, echoed these concerns, warning that such restrictions could threaten Second Amendment protections. Circle has not disclosed how long the prohibition had been in place, though USDC has been in circulation for over seven years.

The clarification has reignited debate over whether financial intermediaries should control access to lawful commerce. Critics argue that private policy enforcement can mirror state-level restrictions, while supporters say clearer rules reduce ambiguity for both users and regulators.