Circle updates USDC policy to allow legal firearm purchases, sparking discussions on stablecoin neutrality

According to market news, the 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 legitimate business activities. A Circle spokesperson confirmed, "We have clarified the terms to reflect that USDC can be used for legal 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 indicates "stablecoins are influenced by political figures" and questioned whether centralized stablecoin issuers can truly remain neutral, as they are "bound by U.S. laws, regulations, and political policies."