Circle Explores Reversible USDC Transactions

Circle, a leading stablecoin issuer, is considering reversible USDC transactions to align with traditional finance’s refund mechanisms, as reported by the Financial Times on September 23, 2025. President Heath Tarbert emphasized balancing reversibility for fraud or disputes with blockchain’s core principle of settlement finality. With a $74 billion market cap, USDC trails only Tether’s USDT. Circle, now publicly traded, can currently freeze or blacklist addresses but cannot reverse completed transfers. Reversible transactions could attract institutional investors by mirroring traditional banking protections, but they challenge blockchain’s immutability. Circle’s Arc blockchain, designed for fast stablecoin settlements, underscores its push for mainstream adoption. As stablecoin regulations like the GENIUS Act take shape, businesses must adapt to evolving compliance requirements while exploring new financial tools.

Sabal Law PLLC’s expertise in blockchain, AML/KYC, and securities law helps clients navigate the evolving regulatory landscape of stablecoins and digital assets. We guide businesses and investors through compliance with the GENIUS Act, ensuring robust anti-fraud measures and secure transactions. Schedule a Consultation to protect your digital asset ventures and stay compliant with new regulations!

Source: Financial Times, September 23, 2025