DOJ Backs Down on Biden-Era “Engaged in the Business” Rule—Major Win for Gun Owners

Under former President Joe Biden (D) the ATF made a multitude of rules on firearms outside of congressional approval

A significant development for Second Amendment advocates happened. The federal government is stepping back from defending one of the most controversial rules in recent years. Gun Owners of America (GOA) and Gun Owners Foundation (GOF), alongside multiple state attorneys general, have secured a major legal victory.

This comes as the Department of Justice (DOJ) has now asked the Fifth Circuit Court of Appeals to dismiss its appeal. This comes in the case challenging the Biden-era “Engaged in the Business” rule. This is a massive win for the Second Amendment.

What the Rule Tried to Do

The ATF’s “Engaged in the Business” rule was widely criticized as an attempt to expand federal control over private firearm sales. This was done without congressional approval. Under the rule any individual selling firearms—even occasionally—could be classified as “dealers”.

That classification would require a Federal Firearms License (FFL). Failure to comply could result in serious federal criminal charges. We have long argued the rule effectively created universal background check requirements.

Even worse, these requirements were done outside the legal framework of the legislature and done through regulation inside the executive branch. This is a massive violation of constitutional norms and standards. It is once again showcasing an ever increasing federal government power grab. 

The Legal Fight

GOA and GOF didn’t fight this battle alone. They were joined by a coalition of state attorneys generals. These states included Texas, Louisiana, Utah, and Mississippi. Together, they secured a preliminary injunction blocking the rule from being enforced.

Now, with DOJ moving to dismiss its appeal. This means that the injunction remains in place. The case now returns to the lower court and the path is open for a permanent ruling against the rule. Once again we are seeing that the Fifth Circuit is continuing to side with the Second Amendment by applying the Breun standard. 

Why This Matters

At its core, this case is about more than one rule—it’s about how far federal agencies can go without Congress. Opponents of the rule argued it criminalized lawful private gun sales. Fundamentally, it shifted the burden of proof onto gun owners and expanded ATF authority beyond statutory limits.

However the concern wasn’t just enforcement—it was precedent. If allowed to stand, this type of rulemaking could open the door for future administrations to regulate gun ownership through interpretation alone. While this time it was on firearms, if allowed to stand this standard could be used against any rights in the United States.

A Shift in Direction

The DOJ’s decision to drop the appeal signals a notable shift in how the rule is being handled at the federal level. According to GOA leadership, the move represents a rollback of Biden-era regulatory expansion. It is also a step toward restoring limits on agency authority.

This is a signal that ongoing legal challenges are having an impact. We know that the fight isn’t over. We also know while this DOJ is backing down on this issue, they are at the same time backing the Biden era “frame & Receiver” rule.

What Comes Next

With the appeal dismissed, the case now heads back to district court. Here  GOA and its partners are expected to push for a permanent injunction and a final ruling declaring the rule unlawful. If successful, it would ensure the rule cannot be revived in the future—regardless of which administration is in power.

This development marks a key moment in the broader legal battle over federal firearms regulation. The “Engaged in the Business” rule represented one of the most aggressive attempts to regulate private firearm sales in recent years. With the DOJ stepping back, that effort has taken a serious hit.

For now the rule is blocked and the legal challenge continues. This outcome could shape the limits of federal gun regulation for years to come. It also could shape the ability for the federal government to regulate on other things, not just firearms. Stay with 2 If By Sea Tactical as we continue tracking this case and what it means for gun owners nationwide.

Here at 2 If By Sea Tactical we strive to bring you the best experience in the firearms world.  As we continue to grow the media arm of 2 If By Sea, make sure you keep tuning in to our Youtube and Rumble channels and right here at “The Patriot’s Almanac” to stay informed on the latest happenings in the firearm world! But we are not lawyers, so this isn't legal guidance. We are proud to be Southern Minnesota source for all things 2A.

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