**Circle Updates USDC Policy to Allow Firearm Transactions**
Circle has recently revised its terms of service to permit the purchase of firearms using USDC, following criticism from the gun industry and U.S. lawmakers. This notable policy shift highlights the growing influence of political pressure on centralized stablecoins and raises important questions about future regulatory challenges in the digital currency space.
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### Circle Reverses USDC Policy after Industry Pressure
In an announcement from Circle’s CEO, Jeremy Allaire, the company clarified its updated stance:
> “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.”
This reversal comes after significant backlash accusing Circle of financial discrimination against certain industries. Industry insiders view this incident as a prime example of the vulnerability of centralized stablecoins like USDC to political and regulatory pressures.
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### The Broader Implications
Circle’s decision underscores the delicate balance stablecoin issuers must strike between complying with financial regulations and avoiding potential censorship or exclusion of lawful users and businesses.
Notably, political figures have expressed support for Circle’s updated policy, drawing parallels to *Operation Choke Point*—a controversial initiative from 2013 to 2017 where U.S. banks faced pressure to avoid “high-risk” sectors such as firearms and gambling. This historic reference highlights ongoing debates about financial access and the role of digital currencies in these discussions.
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### USDC Market Overview
According to CoinMarketCap, USDC currently boasts a market capitalization of $75.24 billion, maintaining its peg at $1.00. Over the past 24 hours, the stablecoin saw a trading volume of approximately $16.37 billion, which marks a nearly 50% decrease in activity. Price fluctuations remain minimal, with a 1.70% movement within the same period.
*USDC (USDC) Daily Chart — Screenshot from CoinMarketCap at 06:06 UTC on November 6, 2025.*
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### Looking Ahead
The Coincu research team suggests that Circle’s policy reversal may catalyze further dialogue regarding the regulatory landscape for stablecoins. As political and market reactions continue to unfold, the stablecoin industry faces critical questions about its resilience and adaptability amid evolving pressures.
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*Stay tuned to BitcoinEthereumNews.com for more updates on this developing story.*
https://bitcoinethereumnews.com/tech/circle-updates-usdc-policy-to-allow-firearm-transactions/
