Circle has defended its policy on freezing USDC assets, emphasizing that it requires legal authorization to do so. This response follows criticism related to the Drift Protocol exploit, where over $270 million was reportedly drained, including $230 million in USDC that was not immediately frozen. Circle clarified that freezing assets is a legal obligation, not a discretionary action, and must be based on lawful orders from authorities. The company highlighted a gap between the rapid pace of blockchain transactions and the slower legal processes, which can hinder timely intervention in exploit scenarios. Circle called for updated legal frameworks to enable faster responses while maintaining due process and property rights. This aligns with ongoing U.S. regulatory efforts, including the GENIUS Act and the CLARITY Act, aimed at improving digital asset policy.