- Circle allows USDC use for lawful firearms transactions, reversing a ban.
- Gains support from lawmakers and industry groups.
- No direct impact on Bitcoin or Ethereum reported.
Circle Inc. has updated its USDC policy to permit lawful firearm purchases, reversing previous restrictions and aligning its terms with U.S. law.
The decision addresses financial biases against lawful industries, underscoring stablecoins' growing influence in mainstream finance, while USDC remains unaffected in broader market dynamics.
Circle has updated its USDC policy to permit lawful firearms purchases in the United States.
The policy change enhances USDC’s alignment with federal laws, potentially influencing financial discrimination debates.
USDC Now Permitted for Firearm Purchases
Circle's leadership confirmed that USDC can now be used for the lawful purchase of firearms, aligning the policy with U.S. laws. Jeremy Allaire stated the firm does not discriminate against firearms purchases.
"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." — Jeremy Allaire, Co-Founder & CEO, Circle
Americans for Tax Reform and the National Shooting Sports Foundation had campaigned for this change, highlighting previous restrictions as biased against lawful commerce concerning firearms transactions.
Community Applauds Circle's Policy Update
The policy update immediately affected the cryptocurrency community, where lawmakers and industry groups praised Circle. Senator Bill Hagerty described it as a defense of American constitutional rights.
The decision resonates politically, opposing prior Operation Choke Point styles of financial exclusion for firearms, signaling potential changes in how tech firms view lawful commerce.
Comparisons to Cannabis and Gambling Restrictions
This change draws comparisons to restrictions faced by industries like cannabis and gambling, illustrating ongoing issues with financial access. Such reversals by stablecoin issuers remain rare.
Circle's shift signals potential repercussions, based on historic instances, that could influence future policies against financial discrimination of lawful sectors.
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