Circle, the US’s stablecoin issuer, updated its terms of service to allow lawful firearm purchases with USDC. This has reversed a policy that had banned such transactions until this month.
The crypto industry’s second-largest stablecoin issuer previously categorised the purchase of “weapons of any kind, including but not limited to firearms, ammunition, knives, explosives, or related accessories,” as a prohibited purchase.
However, Americans for Tax Reform (ATR) and the National Shooting Sports Foundation (NSSF), two conservative and gun rights groups, pushed for change. Now, those terms have been updated this month to specify that only weapons purchased in “contravention of applicable laws” would be banned.
Circle gains praise from Republicans and the gun lobby
The NSSF stated that it appreciates Circle’s quick turnaround in publicly and unequivocally stating that the company does not discriminate against lawful firearm commerce.
At the same time, Republican senators celebrated the reversal as a victory against ‘chokepoint-style’ financial discrimination. This refers to the ideological targeting of lawful businesses and consumers through financial restrictions.
Sen. Bill Hagerty (R-TN), author of the recently passed GENIUS Act, said, “This is a reversal of Choke Point–inspired mechanisms to end run the legislative process and surreptitiously achieve liberal partisan goals […] America will no longer stand for this weaponization of our financial system.”
Additionally, pro-crypto senator Cynthia Lummis said that Circle is protecting constitutional rights by making sure that banking systems can’t be used against law-abiding gun owners and legal businesses. This is because its terms of service align with existing law, rather than imposing additional restrictions.
“Circle’s decision to allow legal purchases of firearms using its stablecoin takes a powerful stand against the discrimination targeting lawful gun owners,” she stated.
Due to the GENIUS Act, private stablecoins are now a bigger part of the US financial system. The total market cap has grown to over $300 billion, and some of the biggest companies on Wall Street are lining up to start their own tokens.
As stablecoins become more popular, conservative, pro-gun, and other businesses that have been discriminated against in the past, like cannabis and gambling, may be on high alert for similar policies that limit their use.
USDC surpasses USDT in terms of activity on the blockchain
JPMorgan experts stated that Circle’s stablecoin is growing faster than Tether’s in terms of blockchain activity and market capitalization. They attributed this to clearer regulations, and more institutions are adopting the stablecoin.
A study released by analysts led by Managing Director Nikolaos Panigirtzoglou stated that USDC’s market capitalization has increased from approximately $43 billion in January to around $75 billion today. This represents a 72% increase, which is significantly faster than USDT’s 32% growth during the same period.
Analysts say that the difference indicates a larger market shift toward stablecoins that prioritize transparency, compliance, and regulatory assurance.
The analysts stated, “USDC’s transparent reserve management and regular audits make it more trustworthy among institutional investors and other regulated entities […] Additionally, its compliance with frameworks like the Markets in Crypto-Assets (MiCA) regulation in Europe sets it apart from competitors, making USDC the preferred stablecoin for financial institutions.”
According to them, the MiCA regulation widened the difference in stablecoin velocity between USDC and USDT.
As reported by Cryptopolitan, USDT has not received MiCA authorization and has faced delistings from major exchanges following the regulation’s rollout. On the other hand, USDC gained momentum from integrations with Visa, Mastercard, Stripe, and other payment networks that enable on-chain settlements and merchant payments.
Join a premium crypto trading community free for 30 days - normally $100/mo.
