Stablecoin issuer Circle has reportedly amended its terms and services, reversing a policy that previously banned the use of USDC to purchase firearms.
Summary
- USDC stablecoin issuer Circle has updates its terms to allow users to purchase firearms using the USDC stablecoin. The update was made after the company received pressure from the National Shooting Sports Foundation and Americans for Tax Reform.
- The company claims to reserve the right to monitor or block transactions that violate its terms and conditions, with the threat of suspending or terminating the user’s Circle Mint account.
On Nov. 5, the stablecoin firm announced that it would update a clause in its Prohibited Transactions policy that prohibits the use of its USD-backed stablecoin, USDC, to purchase “weapons of any kind.” The change would allow for USDC holders to make transactions using the stablecoin to purchase firearms, upholding the Second Amendment in the U.S constitution.
On Nov. 6, Senator Cynthia Lummis responded to the update, praising the stablecoin giant for allowing legal firearm purchases using USDC (USDC).
“By aligning its terms of service with existing legal requirements, Circle defends constitutional rights & ensures financial systems can’t be weaponized against law-abiding gun owners,” said Lummis in her post.
In a statement sent to the National Shooting Sports Foundation or NSSF, the company confirmed that it would clarify its terms to reflect that USDC could be used to make lawful purchases and sale of firearms as protected under the Second Amendment.
“Circle has always held that to the right of lawful, the use of money should be free. This includes lawful purchases of firearms in the United States, which is a Second Amendment protected right,” stated the firm in its statement to NSSF.
The Second Amendment is a part of the U.S. Constitution that protects the right of its citizens to keep and bear firearms. The full text declares that “a well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.”
Since October, Circle has received backlash from conservative and gun rights groups. Initially, the Americans for Tax Reform account highlighted the language buried within Circle’s terms prohibiting the use of USDC to buy weapons of any kind.
“You can’t buy a gun with Dem [Democrat] donor’s stablecoin,” said ATR in its post. The organization was alluding to the fact that Circle CEO Jeremy Allaire’s campaign donations have largely gone to Democrats, specifically Rep. Jake Auchincloss, who is known to have advocated for gun control-related legislation.
The NSSF responded to the post by stating that Circle’s terms and conditions pose a threat to Second Amendment rights in the U.S.
“Stablecoin issuer Circle prohibits legal firearm and ammunition purchases, while its CEO backs gun control advocates in Congress,” wrote NSSF.
After the rule was reversed, the NSSD published an article highlighting the stablecoin issuer’s latest move, stating “Freedom can’t survive if your payment tools work against you.
What transactions are prohibited under Circle’s terms?
According to Circle’s current terms and conditions, within the list of prohibited transactions, the clause that previously stated “weapons of any kind, including but not limited to firearms, ammunition, knives, explosives, or related accessories” has been changed to:
“Weapons of any kind in contravention of applicable laws, including but not limited to, as applicable, firearms, ammunition, knives, explosives, or related accessories,” stated the company.
The company bans USDC transactions involving illegal or high-risk activities. These include dealings with restricted individuals, unauthorized or unlicensed gambling-related activities, money laundering or terrorist financing as well as fraudulent investment schemes such as Ponzi or pyramid programs.
In addition, the stablecoin issuer also bans the use of USDC to purchase goods or services that infringe or violate any copyright, trademark or propriety rights, credit repair services, court ordered payments, unlicensed money transmitting activity, and annuities.
Moreover, users are forbidden from taking part in market manipulation through wash trading, front-running, insider trading or other forms of market-related frauds or deceit. They are also barred from using USDC to purchase counterfeit goods like fake or novelty identification and items or services through darknet marketplaces.
Circle clarifies that it reserves the right to monitor or block transactions. If users are caught violating the terms of conditions related to Circle’s stablecoins, the company may suspend or terminate the user’s Circle Mint account.
