Circle updates USDC policy to allow legal gun purchases, sparking debate over stablecoin neutrality

ChainCatcher News, according to market sources, stablecoin issuer Circle has updated its terms of service, removing the previous prohibition on using USDC to purchase firearms. This policy change was made under pressure from the National Shooting Sports Foundation (NSSF) and gun rights advocates, who accused Circle of discriminating against lawful business activities. A Circle spokesperson confirmed: "We have clarified our terms to reflect that USDC can be used for lawful firearm transactions protected under the Second Amendment. We will not refuse USDC transactions involving legal firearms."

Republican Senator Bill Hagerty called this a "victory against the weaponization of the financial system." However, Kadan Stadelmann, CTO of blockchain technology company Komodo, warned that this incident shows "stablecoins are subject to the control of political figures," and questioned whether centralized stablecoin issuers can truly remain neutral, as they are "subject to U.S. laws, regulations, and political policies."