Wrap Technologies Inc. (NASDAQ: WRAP) received a ruling from the Bureau of Alcohol, Tobacco, Firearms and Explosives that formally classified its BolaWrap 150 device as an instrument of restraint rather than a firearm or weapon under both the Gun Control Act and the National Firearms Act, according to a statement from the company.

The ruling, designated ATF Ruling 2026-2, applies to the company's flagship non-lethal device, which deploys a tethered restraint and is currently used by more than 1,000 law enforcement agencies across the United States and in 60 additional countries.

The classification comes amid a shifting legal environment for law enforcement use-of-force decisions. The U.S. Supreme Court issued a unanimous ruling in 2025 in Barnes v. Felix, requiring that use-of-force decisions be evaluated against the full context of an encounter rather than only the moment force was applied.

Wrap Technologies describes the BolaWrap 150 as a pre-escalation tool that does not rely on pain-based compliance and does not shoot, strike, shock, or incapacitate a subject. The device is intended to give officers additional options before reaching higher-force thresholds.

The company's product portfolio also includes the Wrap Reality virtual reality training platform, the WrapVision body-worn camera system, and counter-drone solutions including the PAN-DA system and the 1KC Kinetic Anti-Drone Cassette.