Wrap Technologies, Inc. (Nasdaq: WRAP) announced that the Bureau of Alcohol, Tobacco, Firearms and Explosives issued Ruling 2026-2, formally determining that its BolaWrap 150 device is not a "firearm" under the Gun Control Act and not an "any other weapon" under the National Firearms Act.

The ruling, signed by ATF Director Robert Cekada and effective July 2, 2026, classifies the BolaWrap 150 as "merely an instrument of restraint," stating it is not an instrument of offensive or defensive combat. The ruling is grounded in the U.S. Supreme Court's 2025 decision in Bondi v. VanDerStok, 145 S. Ct. 857, and explicitly supersedes any prior ATF classification of the device.

"This ruling confirms at the federal level what our company has demonstrated in the field: BolaWrap 150 is not regulated as a firearm or an 'any other weapon' under the federal statutes addressed by the ruling," said Scot Cohen, Founder and CEO of Wrap Technologies.

According to the company, the reclassification affects four procurement categories: corrections and detention facilities, gun-free and civilian safety environments such as schools and hospitals, international deployment across its distribution network spanning more than 60 countries, and autonomous response platforms including its DFR-X drone system.

The company projects the ruling will compress domestic sales cycles from three to nine months down to four to eight weeks, and international sales cycles from four to six months to as little as four to eight weeks. Wrap Technologies estimates the combined addressable opportunity across the four affected market segments at $3 billion or more in global addressable spend.

The company states that under the restraint classification, procurement no longer requires a Federal Firearms License dealer or weapons appropriation, reducing the approval sequence to standard equipment evaluation, purchase order issuance, and approval through a non-lethal or safety-equipment budget line.

The BolaWrap 150 is currently used by more than 1,000 agencies across the United States and in 60 countries. The device operates at distances of 10 to 25 feet and deploys a Kevlar tether to restrain subjects.