Circle's new regulation: Can USDC be used to buy guns? The answer lies in the legal details.

[Coin World] Circle, the company behind USDC, recently took action – modifying the user agreement to draw a line on firearms and ammunition transactions.

What do the new regulations say? In simple terms: it is illegal to buy guns using USDC, but there is no problem with purchasing through legal channels. Circle can now monitor such transactions and will directly intercept them if necessary. It sounds strict, but there is actually a loophole - as long as it complies with local laws, it is still possible to buy.

This matter has caused a stir in the United States. Supporters say it is a respect for the Second Amendment of the Constitution (the right to bear arms). Wyoming Senator Lummis directly stated: “Circle aligns with the law, preventing the financial system from becoming a weapon against legal gun owners.” Of course, there are opposing voices, but the mainstream opinion leans positive.

The timing is very delicate. In July this year, the United States just signed the “GENIUS Act” specifically to regulate stablecoins, and Circle's CEO Jeremy Allaire and Tether's boss Paolo Ardoino were both present to witness it. Now Circle is adjusting its policies, and outsiders speculate that it may be in response to regulatory pressures, or perhaps to build a good relationship with the new government—after all, in terms of stablecoin regulation, Washington's attitude has changed, and businesses need to keep up with the pace.

To put it broadly, this matter reflects a trend: it is becoming increasingly difficult for cryptocurrency payment tools to thrive independently, as fintech and traditional legal frameworks are colliding at an accelerated pace.