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Federal Firearms Act of 1938: Early Federal Dealer Licensing and Prohibited Sales

Last reviewed: 2026-08-28Topic: History of U.S. Gun Laws
Quick answer

The Federal Firearms Act of 1938 expanded federal regulation of interstate firearm commerce, including licensing requirements for certain firearm businesses and restrictions involving specified prohibited purchasers. It was later superseded by the Gun Control Act of 1968.

Four years after the NFA, Congress adopted a second federal approach: regulating interstate firearm businesses and transactions rather than only special weapon categories.

Why it matters: The Federal Firearms Act of 1938 expanded federal regulation of interstate firearm commerce, including licensing requirements for certain firearm businesses and restrictions involving specified prohibited purchasers. It was later superseded by the Gun Control Act of 1968.

Federal licensing became a central tool

The 1938 law required specified manufacturers and dealers engaged in interstate commerce to obtain federal licenses and keep records.

Certain transfers became unlawful

The statute restricted sales or shipments to categories Congress identified as legally disqualified, an early predecessor to the broader prohibited-person structure later adopted in 1968.

Commerce power became increasingly important

Unlike the NFA’s tax structure, federal firearm regulation increasingly relied on Congress’s authority over interstate commerce.

The 1968 Gun Control Act replaced the framework

The GCA repealed and reenacted significant federal firearms provisions within a broader system of licensing, prohibited persons, interstate-transfer rules and criminal penalties.

Where this fits in the larger timeline

This event is part of the History of Gun Laws in America series. Federal firearm law developed incrementally through constitutional amendments, taxation and commerce statutes, criminal prohibitions, background-check legislation and modern Second Amendment decisions.

Frequently asked questions

What was the Federal Firearms Act of 1938?

It was an early federal law regulating interstate firearm businesses, licensing and specified prohibited transfers.

Is the Federal Firearms Act still in effect?

Its framework was superseded and substantially replaced by the Gun Control Act of 1968.

Did federal gun dealer licensing begin in 1938?

The 1938 Act was an important early federal licensing regime for firearm businesses.

How was the 1938 law different from the NFA?

The NFA focused on taxation/registration of specified weapons; the 1938 Act focused more broadly on interstate firearm commerce and dealers.

Sources and legal references