Circle Internet Financial, the issuer of the USDC stablecoin, has updated its user terms in November 2025 to clarify that restrictions on transactions involving weapons, ammunition, explosives, or related items apply only when they are conducted in contravention of applicable laws. This revision effectively permits legal firearm purchases using USDC, reversing a previous policy that broadly banned such transactions.
The change sparked immediate discussion online and drew praise from U.S. lawmakers and gun rights advocates. Senator Cynthia Lummis of Wyoming stated on X that she was "glad [Circle] now allow legal firearm purchases using its stablecoin", adding that it "defends constitutional rights and ensures financial systems can’t be weaponized against law-abiding gun owners." Similarly, Senator Bill Hagerty, author of the GENIUS Act, hailed the move as a reversal of "Choke Point–inspired mechanisms" that target lawful businesses.
This policy adjustment aligns with the broader U.S. regulatory landscape, including the GENIUS Act passed in July 2025, which establishes federal oversight for payment stablecoins. Circle CEO Jeremy Allaire attended the bill's signing ceremony, underscoring the company's focus on compliance. Concurrently, JPMorgan analysts reported that USDC's market capitalization surged from approximately $43 billion in January 2025 to around $75 billion by November, a 72% increase, outpacing USDT's 32% growth. They attributed this to USDC's transparent reserves, regular audits, and compliance with frameworks like Europe's MiCA regulation, which has boosted institutional adoption.
Circle, which operates under U.S. supervision and seeks approvals under MiCA, has not publicly commented beyond the updated terms. The company emphasizes that all USDC transactions must comply with laws, sanctions, and anti-money-laundering obligations, positioning compliance as a competitive advantage in the evolving digital finance sector.
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