Circle (NYSE: CRCL), the crypto company behind the popular stablecoin USDC , has backtracked on its anti-gun purchase policy after facing intense backlash from conservative and gun rights groups.
USDC is a cryptocurrency that is considered a kind of digital dollar as the value of 1 USDC is the same as that of 1 U.S. dollar.
With a total market cap of approximately $75 billion at press time, USDC is the world's second-largest stablecoin after Tether's USDT and accounts for around 25% of the stablecoin market.
The stablecoin issuer earlier prohibited USDC transactions for the purchase of firearms.
As per the USDC terms last updated on Oct. 28, Circle said it reserved the "right to monitor and, if appropriate, block or otherwise prevent transactions" related to "weapons of any kind in contravention of applicable laws, including but not limited to, as applicable, firearms, ammunition, knives, explosives, or related accessories."
Groups alleged Circle's anti-gun policy violation of Second Amendment
On Oct. 14, the advocacy group Americans for Tax Reform (ATR) wrote that Circle's decision to ban the sale of firearms was reflective of CEO Jeremy Allaire's political bias who is an "avid donor" to Democrats . Among them, Rep. Jake Auchincloss (D-MA) has previously sponsored gun-related legislation.
Central bankers could easily target "politically disfavored industries" like firearms as the Barack Obama and Joe Biden administrations targeted them as part of "Operation Chokepoints," ATR said. It added that regulators also targeted and debanked crypto as part of Operation Chokepoint 2.0 during the Biden administration.
The National Shooting Sports Foundation (NSSF) further amplified the criticism. The national trade association for the firearms industry, NSSF wrote on Oct. 20 that though Congress passed the GENIUS Act to provide a legal framework for U.S. dollar–backed stablecoins, Circle was "quietly writing its own rules" to create a system that treats lawful firearm purchases as a prohibited activity.
"This is not consumer protection; it's ideological enforcement... For America's firearm owners and retailers, Circle's rules about how their cryptocurrency can be used should sound alarm bells."
NSSF also alleged that Circle's anti-gun purchase policy reflected Allaire's political bias, owing to his donations to Democrats, including Auchincloss. Firearm ownership is a constitutional right and Circle's ban restricted customers and businesses from exercising their rights guaranteed under the Second Amendment, the association added.
In response to NSSF's statement, Circle said it believes the use of money should be free, including the lawful purchase of firearms in the U.S. It further said it would work with its partners to update its terms.
Circle's policy reversal earns praise from Republicans
On Nov. 5, crypto industry journalist Eleanor Terrett reported in the Crypto in America newsletter that last week, Circle told NSSF that it has clarified its terms so that USDC may be used to pay to buy and sell firearms lawfully.
"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."
NSSF said it appreciated Circle's "quick turnaround" and added it's welcome news coming from a member of an industry, i.e., cryptocurrency, that also faced discrimination like the firearm industry.
Sen. Cynthia Lummis (R-WY) welcomed Circle's decision to update its gun policy which defends constitutional rights and ensures financial systems can't be weaponized against law-abiding gun owners.
Sen. Bill Hagerty (R-TN) told Crypto in America, "This is a reversal of Choke Point–inspired mechanisms to end run the legislative process and surreptitiously achieve liberal partisan goals."
While Hagerty introduced the GENIUS Act, Lummis was among those who co-sponsored it. Trump signed the legislation into law on July 18.
This story was originally reported by TheStreet on Nov 6, 2025, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
