Texas v. ATF lawsuit scores massive win as feds retreat from 'engaged in the business' rule
The Department of Justice filed a motion to dismiss Texas v. ATF, effectively abandoning defense of a rule that would have turned countless private gun sellers into felons overnight.
This is a massive victory for the Second Amendment and every American who's ever sold a firearm at a gun show, to a neighbor, or through a private transaction.
The ATF's "engaged in the business" rule was regulatory tyranny dressed up as public safety. It dramatically expanded the definition of who qualifies as a gun dealer requiring a Federal Firearms License, threatening ordinary citizens with federal prosecution for conducting perfectly legal private sales.
Texas led the charge against this bureaucratic overreach, and the feds just blinked.
Acting Attorney General Todd Blanche's DOJ apparently recognizes what gun owners have known all along: this rule was unconstitutional overreach designed to create a backdoor gun registry and harass law-abiding Americans.
The original rule, finalized in 2024, gave ATF agents broad discretion to determine who was "engaged in the business" of selling firearms. Sell a few guns from your personal collection? The feds could decide you needed a license. Couldn't afford the fees and compliance costs? Congratulations, you're now a criminal.
This was never about stopping violent criminals. Gang members and drug dealers don't fill out Form 4473s. This was about expanding federal control over every firearm transaction in America.
Gun Owners of America, the Firearms Policy Coalition, and other pro-Second Amendment organizations fought this rule in multiple courts. Texas's lawsuit represented the strongest state-level challenge.
With DOJ's retreat, the rule is effectively dead.
But don't celebrate too long. The regulatory apparatus that created this mess still exists. The ATF still employs the same bureaucrats who dreamed up this scheme. The next anti-gun administration will try again.
Gun owners must remain vigilant. Contact your representatives and demand permanent legislative protection for private sales. The Second Amendment shouldn't depend on which party controls the White House.