TN AG Skrmetti Sues Biden Admin Over New Gun Dealer Rule

Tennessee Attorney General Joins Multi-State Lawsuit Challenging New ATF Rule

NASHVILLE, Davidson County, Tennessee — Tennessee Attorney General Jonathan Skrmetti has joined a coalition of state attorneys general in suing the U.S. Department of Justice (DOJ) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) over a recently finalized federal rule that redefines who qualifies as a firearm dealer.

The lawsuit takes aim at a Biden administration rule that expands the scope of who is considered "engaged in the business" of selling firearms. Under the new regulation, anyone who sells firearms for profit would be required to obtain a federal firearms license, register with the federal government, and conduct background checks on buyers — regardless of whether the sale occurs at a commercial storefront, a gun show, online, or between private individuals.

"The Biden administration is attempting to create a universal background check system without Congressional approval," Skrmetti said in announcing the legal action. "This rule targets law-abiding Tennesseans who are simply exercising their constitutional rights."

What the Rule Changes

Federal firearms law has long drawn a distinction between licensed firearm dealers and private individuals who occasionally sell firearms from their personal collections. The ATF rule narrows that distinction by focusing on whether a person sells firearms "for profit" and on the frequency and nature of sales, rather than on the traditional business model of an established dealer.

Supporters of the rule frame it as an effort to close the so-called "gun show loophole," arguing that it will require background checks on more sales and reduce opportunities for prohibited purchasers to obtain firearms. The DOJ and ATF have said the change seeks to modernize enforcement and ensure federal law keeps pace with evolving sales channels.

Opponents, including Skrmetti and the multi-state coalition, counter that the agency exceeded its statutory authority. The legal challenge alleges the ATF has attempted to rewrite the law through regulation rather than seeking new authority from Congress, an action the plaintiffs describe as an unconstitutional exercise of executive power.

Legal Arguments and Claims

The complaint filed by Tennessee and other states contends the ATF's rule runs afoul of limits Congress placed on administrative agencies. The suit argues the ATF cannot change the statutory meaning of who is "engaged in the business" of selling firearms and that doing so effectively imposes a universal licensing and background check regime without legislative approval.

In asserting the lawsuit, Skrmetti’s office emphasized constitutional protections and states’ rights. The legal papers claim the rule will sweep in private collectors and hobbyists who occasionally sell a firearm from their personal collections — transactions that historically have not required federal licensing or background checks.

The lawsuit seeks to block implementation of the rule nationwide and to force the federal government to rescind or significantly narrow the regulation. Multiple states have joined the coalition in asking a federal court to issue an injunction while the legal challenge proceeds.

Political and Local Reaction

The case pits Tennessee and other state governments against the Biden administration at a time when firearms policy remains a deeply divisive issue. Tennessee’s move aligns with other state attorneys general who have litigated against federal regulatory actions they view as overreach on issues ranging from environmental regulation to immigration enforcement.

State lawmakers and conservative leaders in Tennessee praised Skrmetti’s action as a defense of the Second Amendment and of Tennesseans’ liberty. "This rule targets law-abiding Tennesseans who are simply exercising their constitutional rights," Skrmetti said, reiterating his office’s stance that the ATF has overstepped.

Nationally, advocates for stricter gun laws have welcomed the ATF’s effort as a necessary step to tighten background checks and close loopholes that can allow prohibited individuals to obtain firearms. The dispute underscores a broader political struggle over whether major policy changes on contentious issues should be pursued through regulatory action by executive agencies or through the legislative process in Congress.

Background and Broader Context

The Biden administration finalized the rule as part of a wider push to reduce gun violence by tightening oversight of firearms transactions. Officials framed it as updating enforcement to better address modern sales practices, including online marketplaces and unregulated point-to-point sales that have been criticized for enabling criminal procurement of weapons.

Critics, including state attorneys general and gun-rights organizations, say the change blurs the line between casual, infrequent private sales and commercial operations, unfairly subjecting private sellers to the same licensing and record-keeping burdens as established dealers. They argue that Congress — not an agency — must determine where that line should be drawn.

Tennessee’s involvement adds the weight of a state with strong gun-rights traditions to the legal challenge. The case will test judicial interpretations of statutory authority and administrative power, and it could have wide implications for how other federal agencies define the scope of regulated activities.

What Comes Next

The lawsuit requests that a federal court block the ATF’s rule from taking effect while the legal battle moves forward. If the injunction request is granted, implementation could be delayed for months or longer pending final adjudication. If the court upholds the regulation, the case may be appealed, potentially rising to higher courts where broader questions about administrative reach and Second Amendment protections could be settled.

For now, gun owners and private sellers in Nashville and across Davidson County and Tennessee face legal uncertainty about how the new rule would affect routine transactions. Businesses that host gun shows, firearms dealers, and collector groups will be closely watching court filings and rulings.

Why This Matters

This lawsuit is more than a narrow dispute over licensing rules; it represents a major confrontation between state governments and the executive branch over the limits of regulatory authority. At stake are Second Amendment liberties, the future of private gun sales, and the proper role of Congress in authorizing significant expansions of federal power. The outcome will shape how far federal agencies can go in rewriting statutory boundaries through regulation and will influence national debates over gun rights and public safety.

For ongoing coverage of legal and political battles like this one, see our America First section and our Tennessee state page at WorthFighting — Tennessee.