diff --git a/.changeset/fast-humans-run.md b/.changeset/fast-humans-run.md
new file mode 100644
index 00000000..7166ce4f
--- /dev/null
+++ b/.changeset/fast-humans-run.md
@@ -0,0 +1,5 @@
+---
+'openzeppelin-confidential-contracts': patch
+---
+
+`ERC7984Restricted`, `ERC7984Rwa`: Rename `isUserAllowed` to `canTransact`
diff --git a/contracts/interfaces/IERC7984Rwa.sol b/contracts/interfaces/IERC7984Rwa.sol
index 7bef15e0..ec34ddfc 100644
--- a/contracts/interfaces/IERC7984Rwa.sol
+++ b/contracts/interfaces/IERC7984Rwa.sol
@@ -10,7 +10,7 @@ interface IERC7984Rwa is IERC7984 {
     /// @dev Returns true if the contract is paused, false otherwise.
     function paused() external view returns (bool);
     /// @dev Returns whether an account is allowed to interact with the token.
-    function isUserAllowed(address account) external view returns (bool);
+    function canTransact(address account) external view returns (bool);
     /// @dev Returns the confidential frozen balance of an account.
     function confidentialFrozen(address account) external view returns (euint64);
     /// @dev Returns the confidential available (unfrozen) balance of an account. Up to {IERC7984-confidentialBalanceOf}.
diff --git a/contracts/token/ERC7984/extensions/ERC7984Restricted.sol b/contracts/token/ERC7984/extensions/ERC7984Restricted.sol
index 62dc6fdc..4d487ba2 100644
--- a/contracts/token/ERC7984/extensions/ERC7984Restricted.sol
+++ b/contracts/token/ERC7984/extensions/ERC7984Restricted.sol
@@ -7,11 +7,11 @@ import {ERC7984, euint64} from "../ERC7984.sol";
 
 /**
  * @dev Extension of {ERC7984} that implements user account transfer restrictions through the
- * {isUserAllowed} function. Inspired by
+ * {canTransact} function. Inspired by
  * https://github.com/OpenZeppelin/openzeppelin-community-contracts/blob/master/contracts/token/ERC20/extensions/ERC20Restricted.sol.
  *
- * By default, each account has no explicit restriction. The {isUserAllowed} function acts as
- * a blocklist. Developers can override {isUserAllowed} to check that `restriction == ALLOWED`
+ * By default, each account has no explicit restriction. The {canTransact} function acts as
+ * a blocklist. Developers can override {canTransact} to check that `restriction == ALLOWED`
  * to implement an allowlist.
  */
 abstract contract ERC7984Restricted is ERC7984 {
@@ -39,7 +39,7 @@ abstract contract ERC7984Restricted is ERC7984 {
      *
      * Default implementation only disallows explicitly BLOCKED accounts (i.e. a blocklist).
      */
-    function isUserAllowed(address account) public view virtual returns (bool) {
+    function canTransact(address account) public view virtual returns (bool) {
         return getRestriction(account) != Restriction.BLOCKED; // i.e. DEFAULT && ALLOWED
     }
 
@@ -48,8 +48,8 @@ abstract contract ERC7984Restricted is ERC7984 {
      *
      * Requirements:
      *
-     * * `from` must be allowed to transfer tokens (see {isUserAllowed}).
-     * * `to` must be allowed to receive tokens (see {isUserAllowed}).
+     * * `from` must be allowed to transfer tokens (see {canTransact}).
+     * * `to` must be allowed to receive tokens (see {canTransact}).
      *
      * The default restriction behavior can be changed (for a pass-through for instance) by overriding
      * {_checkSenderRestriction} and/or {_checkRecipientRestriction}.
@@ -85,7 +85,7 @@ abstract contract ERC7984Restricted is ERC7984 {
 
     /// @dev Checks if a user account is restricted. Reverts with {UserRestricted} if so.
     function _checkRestriction(address account) internal view virtual {
-        require(isUserAllowed(account), UserRestricted(account));
+        require(canTransact(account), UserRestricted(account));
     }
 
     /**
diff --git a/contracts/token/ERC7984/extensions/ERC7984Rwa.sol b/contracts/token/ERC7984/extensions/ERC7984Rwa.sol
index 930b3bbf..84f1b57b 100644
--- a/contracts/token/ERC7984/extensions/ERC7984Rwa.sol
+++ b/contracts/token/ERC7984/extensions/ERC7984Rwa.sol
@@ -204,10 +204,8 @@ abstract contract ERC7984Rwa is IERC7984Rwa, ERC7984Freezable, ERC7984Restricted
     }
 
     /// @inheritdoc ERC7984Restricted
-    function isUserAllowed(
-        address account
-    ) public view virtual override(IERC7984Rwa, ERC7984Restricted) returns (bool) {
-        return super.isUserAllowed(account);
+    function canTransact(address account) public view virtual override(IERC7984Rwa, ERC7984Restricted) returns (bool) {
+        return super.canTransact(account);
     }
 
     /// @dev Internal function which updates confidential balances while performing frozen and restriction compliance checks.
diff --git a/test/token/ERC7984/extensions/ERC7984Restricted.test.ts b/test/token/ERC7984/extensions/ERC7984Restricted.test.ts
index 302c9245..a596d167 100644
--- a/test/token/ERC7984/extensions/ERC7984Restricted.test.ts
+++ b/test/token/ERC7984/extensions/ERC7984Restricted.test.ts
@@ -24,26 +24,26 @@ describe('ERC7984Restricted', function () {
     });
 
     it('allows users with DEFAULT restriction', async function () {
-      await expect(this.token.isUserAllowed(this.holder)).to.eventually.equal(true);
+      await expect(this.token.canTransact(this.holder)).to.eventually.equal(true);
     });
 
     it('allows users with ALLOWED status', async function () {
       await this.token.$_allowUser(this.holder); // Sets to ALLOWED
       await expect(this.token.getRestriction(this.holder)).to.eventually.equal(2); // ALLOWED
-      await expect(this.token.isUserAllowed(this.holder)).to.eventually.equal(true);
+      await expect(this.token.canTransact(this.holder)).to.eventually.equal(true);
     });
 
     it('blocks users with BLOCKED status', async function () {
       await this.token.$_blockUser(this.holder); // Sets to BLOCKED
       await expect(this.token.getRestriction(this.holder)).to.eventually.equal(1); // BLOCKED
-      await expect(this.token.isUserAllowed(this.holder)).to.eventually.equal(false);
+      await expect(this.token.canTransact(this.holder)).to.eventually.equal(false);
     });
 
     it('resets user to DEFAULT restriction', async function () {
       await this.token.$_blockUser(this.holder); // Sets to BLOCKED
       await this.token.$_resetUser(this.holder); // Sets to DEFAULT
       await expect(this.token.getRestriction(this.holder)).to.eventually.equal(0); // DEFAULT
-      await expect(this.token.isUserAllowed(this.holder)).to.eventually.equal(true);
+      await expect(this.token.canTransact(this.holder)).to.eventually.equal(true);
     });
 
     it('emits UserRestrictionUpdated event when restriction changes', async function () {
diff --git a/test/token/ERC7984/extensions/ERC7984Rwa.test.ts b/test/token/ERC7984/extensions/ERC7984Rwa.test.ts
index 0ba3c72e..59b6a578 100644
--- a/test/token/ERC7984/extensions/ERC7984Rwa.test.ts
+++ b/test/token/ERC7984/extensions/ERC7984Rwa.test.ts
@@ -98,11 +98,11 @@ describe('ERC7984Rwa', function () {
   describe('ERC7984Restricted', async function () {
     it('should block & unblock', async function () {
       const { token, agent1, recipient } = await fixture();
-      await expect(token.isUserAllowed(recipient)).to.eventually.be.true;
+      await expect(token.canTransact(recipient)).to.eventually.be.true;
       await token.connect(agent1).blockUser(recipient);
-      await expect(token.isUserAllowed(recipient)).to.eventually.be.false;
+      await expect(token.canTransact(recipient)).to.eventually.be.false;
       await token.connect(agent1).unblockUser(recipient);
-      await expect(token.isUserAllowed(recipient)).to.eventually.be.true;
+      await expect(token.canTransact(recipient)).to.eventually.be.true;
     });
 
     for (const arg of [true, false]) {