Overview

• Heath Tarbert told the Financial Times Circle is studying whether select USDC transfers could be refunded in fraud or dispute cases, with no decision yet.
• Circle described the concept as an off-chain counter-payment process akin to a credit card refund rather than undoing blockchain-settled transactions.
• The firm emphasized that Arc’s settlement finality would remain intact, with any reversibility handled as an additional layer above the network.
• Today issuers such as Circle can freeze funds or blacklist addresses but cannot reverse transfers once they reach blockchain finality.
• The exploration has drawn strong criticism from crypto stakeholders warning of centralization and limited crime-fighting value as Circle courts traditional finance users.