Circle Reverses Ban on USDC for Firearm Purchases
Circle, issuer of the $30 billion stablecoin USDC, has reversed its policy banning firearm purchases using USDC. The change received praise from Republican lawmakers and gun rights groups. Fox Business journalist Eleanor Terrett first reported the update on November 5, 2025.
The reversal follows pressure from Americans for Tax Reform (ATR) and the National Shooting Sports Foundation (NSSF). Both groups criticized Circle for “ideological discrimination” after finding a clause preventing transactions related to weapons and ammunition in Circle’s terms of service.
Political Reactions Highlight Financial Discrimination Concerns
ATR’s article titled “You can’t buy a gun with Dem donor’s stablecoin” argued Circle’s policy was financial censorship. The article noted Circle CEO Jeremy Allaire’s donations to Democratic lawmakers favoring gun control. This sparked claims the ban was politically motivated.
Senators Bill Hagerty (R-TN) and Cynthia Lummis (R-WY), creators of the GENIUS Act governing stablecoins, welcomed the change. Lummis said Circle’s decision “defends constitutional rights and ensures financial systems cannot be weaponized against lawful industries.”
Circle confirmed the update in a statement to the NSSF: “USDC may be used for the lawful purchase and sale of firearms, as protected under the Second Amendment.”
The NSSF called the move a “significant gesture” and compared crypto’s banking challenges to the gun industry’s fight against Operation Choke Point, a past government blacklist targeting certain businesses.
Stablecoins, Financial Control, and Ongoing Debate
Stablecoins are growing in importance, with total market capitalization surpassing $300 billion. Private stablecoin issuers now face new federal oversight. Critics say Circle’s initial ban warns of political risks in private financial systems, similar to concerns about central bank digital currencies (CBDCs).
ATR President Grover Norquist emphasized the need for vigilance against government and corporate control over lawful economic activity.
While Circle’s reversal may ease tensions for some, it highlights ongoing divides: it supports gun rights advocates and counters claims of bias against conservatives.
