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ATF Overreach Struck Down: Court Tosses Biden Gun Dealer Rule

June 26, 2026

Big win for gun owners last week, folks. A federal judge in Texas tossed the Biden administration's controversial "Engaged in the Business" rule that would've turned ordinary citizens into potential criminals just for selling their own guns.

U.S. District Judge Matthew Kacsmaryk granted summary judgment for the plaintiffs—Texas, Louisiana, Mississippi, Utah, Gun Owners of America, Tennessee Firearms Association, and Virginia Citizens Defense League—vacating the ATF's overreaching rule entirely.

Here's the problem with this rule: it was so vaguely written that selling even a single firearm to a family member could've landed you in hot water as an "illegal weapons dealer." The ATF basically tried to sidestep Congress and implement universal background checks through bureaucratic fiat. Under this rule, the only way to legally sell a gun to your buddy was to run it through an FFL—effectively universal background checks by the backdoor.

When this thing was proposed back in 2023, it drew over 318,000 comments and split 46 states into opposing camps. That's how divisive this overreach was.

The groups argued what we've been saying all along: the ATF doesn't get to write laws. That's Congress's job. Agencies interpret and enforce existing law—they don't get to transform lawful behavior into regulated activity just because they feel like it.

As the Tennessee Firearms Association put it: "Congress writes statutes. Agencies administer them. When an agency attempts to transform lawful conduct into regulated conduct by bureaucratic decree, it must be challenged—and defeated."

This is the second court to strike down versions of this rule. Last October, another federal court reached a similar conclusion in a case brought by the NRA. The ATF even announced in April that repealing this rule was one of 34 reforms they're pursuing.

So what does this mean for your business? Private sales between law-abiding citizens remain legal without mandatory background checks. The government overreach was stopped. And this sets an important precedent: the ATF can't simply rewrite gun laws through regulation when Congress won't pass them.

This is what happens when we fight back in court. Keep your eyes open and your rights secure, folks.