US Circuit Court Finds ATF’s Ghost Gun Rule Exceeds Authority

The US Court of Appeals of the Fifth Circuit found that the ATF overstepped its authority when it issued new rules redefining the term “frame or receiver.” The move comes just days after another Texas court blocked an ATF rule regulating stabilizing braces in what has become a landmark week in the world of firearms law.

The Context

On April 11, 2022, the ATF issued new rules that redefined what “frame or receiver” meant in a legal context. Specifically, the rules stated that:

“a ‘frame or receiver includes a partially complete, disassembled, or nonfunctional frame or receiver that has reached a stage in manufacture where it may quickly and easily (“readily”) be made to function as a ‘frame or receiver’…”

The ATF said that these rules were intended to target so-called “Ghost Guns,” or unserialized homemade firearms.

About the Case

Almost immediately after the ATF issued the so-called “Final Rule,” plaintiffs in the firearms industry challenged the rule. Gun rights groups like the Firearms Policy Coalition (FPC) and Second Amendment Foundation stepped in to represent the plaintiffs, Tactical Machining and Defense Distributed.

The plaintiffs are no strangers to lawsuits. Defense Distributed was founded by Cody Wilson, who famously posted his designs for the first 3D printed gun, the “Liberator,” on the internet in 2013.

The plaintiffs claimed that the ATF overstepped its boundaries as a regulatory agency by making new rules. They argued that making new laws is the responsibility of the elected officials in Congress, not appointees in regulatory agencies like the ATF.

US District Court Judge Kurt D Engelhardt agreed with the plaintiffs, saying that the ATF had essentially re-written the law. The ATF had essentially decided that a legal activity was a felony overnight, which they weren't allowed to do, Englehardt said.

Looking Forward

This ruling won’t go into effect immediately. The US Supreme Court has already said that the federal government can continue to enforce the ATF’s Final Rule until the legal battle is officially closed. We’ll keep an eye on the situation as it develops.