Circle changes policy, allows users to buy certain weapons with USDC

Stablecoin issuer Circle just dropped a major policy update for USDC - they're now explicitly allowing legal weapon purchases with the stablecoin. Crypto sleuths spotted the terms change this week, and it's a significant shift in how they handle firearms transactions.

The updated terms now specifically state that Circle has the "right to monitor and, if appropriate, block or otherwise prevent transactions" related to weapons purchases - but here's the key change: they added "in contravention of applicable laws." This means US-based users and others can now legally buy firearms, ammunition, explosives and other weapons using USDC, as long as it's within the law.

The big question: how was Circle enforcing these restrictions before? Or were they even in the terms since USDC launched back in 2018? Cointelegraph reached out to Circle for comment but got radio silence at publication time.

US lawmakers and gun advocates are already celebrating this as a win for Second Amendment rights. Wyoming Senator Cynthia Lummis dropped this statement on X:

Is this move connected to Trump-era crypto politics? Circle's timing is interesting - it comes after President Donald Trump and Republicans passed the GENIUS Act in July to regulate payment stablecoins. Circle CEO Jeremy Allaire and Tether CEO Paolo Ardoino were both at the signing ceremony for that legislation.

The big question everyone's asking: is this policy shift a response to pressure from lawmakers and Second Amendment supporters, or is Circle strategically aligning with the current administration's crypto-friendly stance?