Trump ATF Reviewing Definition of "Engaged in the Business" for Federal Firearms Licenses

DOJ press release on April 7, 2025 included a review of Final Rule 2022R-17F, the definition of what it means to be “engaged in the business” of dealing in firearms. From the atf.gov:

“Today’s repeal of the Zero Tolerance Policy and the comprehensive review of stabilizing brace regulations and the definition of ‘engaged in the business’ marks a pivotal step toward restoring fairness and clarity in firearms regulation,” said Acting ATF Director Kash Patel. “We are committed to working with all stakeholders to ensure our policies are balanced, constitutional and protective of Americans’ Second Amendment rights.”

The leadership of the Biden administration, using the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)  had proposed a radical restructuring of the definition of “engaged in the business”, based on minor changes made in the Bipartisan Safer Communities Act (BSCA). The BSCA  went into effect on June 25, 2022.

The BSCA made a minor change in the wording of the definition. The words were changed from  “with the principle objective of livelihood and profit” to “to predominantly earn a profit“. This minor wording change was used as a pretext by the Biden administration to radically change firearms law in the United States. From AmmoLand:

Some of the most radical changes proposed in the new ATF rule are to completely redefine “personal collection,” “personal collection of firearms,” “personal firearms collection,” and “hobby.”  Three of the long-term exceptions to “engaged in the business” have been:

a person who makes occasional sales, exchanges, or purchases of firearms for the enhancement of a personal collection or for a hobby, or who sells all or part of his personal collection of firearms;

The changes proposed by the “Final rule” change the exceptions above to exclude any which involved self defense or selling a firearm for more than the price it was acquired for. The definition proposed by the Biden administration ATF would have required huge numbers of gun owners who previously did not need an FFL to obtain one or risk committing felonies for actions long accepted as personal and private.

The review by the Trump ATF is expected, at minimum, to reverse the “Final rule” and return to the longstanding definition of “engaged in the business”.

Analysis:

The Trump administration could go further and create a rule to reduce some of the onerous firearms regulation of Federal Firearms Licensees. This would conform to the overall objective of deregulation of the economy, and restoring freedom inside the United States. Some possible interpretations of “to predominantly earn a profit” are:

• A minimum of actual firearms sales to qualify, perhaps more than 12 per year.
• A minimum of the amount of profit required, perhaps more than $5,000 per year.
• Indexing the amount required to the cost of living.
• Categorically excluding any “non-firearms”.
• Explicitly stating that “to predominantly earn a profit” is *not required* to obtain an FFL for personal use.  This is implicit in the act, as no one can guarantee a profit. It should be made clear for the use of those who desire an FFL for convenience. This would reverse the policy of President Clinton which saw the reduction in the number of FFLs as a positive good.

The stated purpose of the Gun Control Act of 1968 (GCA 1968), of keeping firearms out of the hands of bad actors, has failed miserably. It makes no sense to pass sweeping laws placing significant burdens on huge numbers of innocent citizens, in the hope of restricting access to a few bad actors. The unstated purpose of the GCA 1968 was to create the precursor of a universal gun registry, a concept firmly rejected by voters and the Congress.

Elimination of many of the restrictions of  GCA 1968 are in process in the courts. Legislative action will be required to eliminate the entire ill-thought and counterproductive edifice. Similar actions are in process to reduce the sweep and silliness of the National Firearms Act of 1934.

©2025 by Dean Weingarten: Permission to share is granted when this notice and link are included.

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