Circle Updates USDC Policy to Allow Firearm Transactions

Circle has revised its terms of service to permit the purchase of firearms using USDC, following criticism from the gun industry and lawmakers in the U.S.

The policy shift highlights the influence of political pressure on centralized stablecoins, inviting discussion on future regulatory challenges in the digital currency industry.

Circle Reverses USDC Policy after Industry Pressure

According to an announcement by Circle’s CEO, Jeremy Allaire:

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. We have not, and will not, deny the use of USDC for legally permissible transactions involving firearms.

Industry insiders have pointed to the incident as highlighting the vulnerability of centralized stablecoins to political pressures. This policy reversal highlights the balance that stablecoin issuers must maintain between adhering to financial regulations and facing potential censorship.

Political Figures Support Circle’s Decision on Firearms

Did you know? The reversal is reminiscent of Operation Choke Point, where U.S. banks faced pressure to avoid “high-risk” industries like firearms and gambling from 2013 to 2017, reflecting ongoing debates about financial access.

According to CoinMarketCap, USDC currently holds a market cap of $75.24 billion and trades at $1.00. The trading volume over the last 24 hours is approximately $16.37 billion, noting a decrease of nearly 50%. Over the past 24 hours, USDC’s price has moved 1.70%, indicating minimal fluctuation in response to recent developments.

The Coincu research team suggests that this decision might further discussions on the regulatory landscape for stablecoins. Political and market reactions could shape upcoming frameworks, marking a crucial juncture for centralized cryptocurrencies amidst broader legal financial integration.