Circle Internet Group has reversed its USDC ($1.00) policy and now allows legal firearm purchases that comply with applicable law. The decision follows industry advocacy and aligns with federal regulatory frameworks that address financial discrimination.
This policy update comes amid increasing scrutiny of payment platforms accused of restricting access for legal gun dealers. The change reflects the passage of the GENIUS Act, which created a federal framework for dollar-backed stablecoins in the United States.
USDC terms reflect legal firearms transactions
Previously, Circle’s USDC policies prohibited all gun purchases, including firearms. This approach drew criticism from the National Shooting Sports Foundation (NSSF), which called the rule “financial discrimination.”
The NSSF argued that such bans unfairly penalized legal gun companies and owners operating within constitutional rights.
In response to this advocacy and public attention, Circle revised its terms to only prohibit the sale of weapons “in violation of applicable laws.” Circle representatives confirmed to NSSF that the updated policy allows USDC for legal purchases of firearms and accessories.
USDC had a market cap of $74 billion and a stablecoin market share of 25.5% as of September 2025, making this change significant for digital payments.
The NSSF praised the policy change as a victory over ideological constraints. However, the organization stated that it would “trust, but verify” Circle’s commitment, emphasizing continued vigilance against financial discrimination.
Senator Cynthia Lummis supported Circle’s decision. As shared in a post on
Regulatory Landscape: Executive Order and Stablecoin Legislation
Circle’s reversal is related to President Trump’s Executive Order “Guaranteeing Fair Banking for All Americans,” issued on August 7, 2025. The order targets “debanking,” in which financial firms deny services to political views or legal but controversial businesses, specifically mentioning the firearms sector.
The order requires regulators to replace “reputational risk” with objective, risk-based standards and review historical cases of debanking. Institutions must notify and restore clients of services denied for political or legitimate business reasons.
A 180-day deadline was set for compliance.
Additionally, the GENIUS Act, signed into law on July 18, 2025, established clear federal rules for stablecoin issuers. It established standards for licensing and exempted issuers from certain capital requirements for banks. This law is seen as a turning point for US stablecoin policy and has encouraged more adoption by creating regulatory clarity.
These regulatory developments are creating new political and legal pressure on payment companies to avoid the imposition of ideological bans. Circle’s decision reflects this changing landscape.
Broader implications for stablecoins and payment systems
Circle’s update signals the growing influence of stablecoins on global payments. According to Circle’s reports, USDC circulation increased by more than 78% in 2025, with monthly transactions reaching $1 trillion. These figures highlight the transition of stablecoins from niche assets to mainstream payment solutions.
The firearms policy revision could impact how other stablecoin issuers define what is allowed. Some observers worry that USDC’s involvement in politically sensitive issues could complicate compliance outside the US, where attitudes vary widely. Others believe this promotes resistance to censorship and maintains neutrality in digital finance.
NSSF framed this move as part of a larger trend: payments and financial companies are moving away from ideological constraints. The organization warned that digital economies make payments firms’ policies crucial for entry into the industry, underscoring what is at stake for financial freedom.
Circle’s decision comes as other companies, such as BitPay, face criticism for restricting the legal gun trade. Advocacy groups such as the NSSF are stepping up their efforts to combat financial discrimination, which is labeled as risk management.
The stablecoin sector is primed for growth. Daily transaction volume could reach $250 billion within three years, McKinsey reports. Stablecoins will reach a global value of $5.7 trillion by 2024, allowing them to compete with traditional networks like Visa. Circle’s policy change could shape how issuers deal with regulatory and political pressure as they seek greater market share.
Whether Circle’s turnaround sets a standard for other crypto companies remains uncertain. Only time will tell whether payment neutrality becomes the industry norm or whether stablecoin issuers must continue to strike a balance between legal requirements, constitutional rights and the needs of global markets.
The post Circle Allows Legal Firearm Purchases with USDC After Pressure from Regulators appeared first on BeInCrypto.
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