Donald Trump Jr.-backed GrabAGun Digital Holdings Inc. (PEW), an online firearms retailer sometimes described as the "Amazon of guns," could benefit from a proposed Bureau of Alcohol, Tobacco, Firearms and Explosives rule that would make it easier for licensed dealers to ship guns directly to buyers' homes.

ATF Rule Could Reshape Online Gun Sales

The rule, if finalized, would mark one of the most consequential changes to U.S. gun policy in two decades and could drive significant growth in online firearm sales, according to a Reuters report that cited industry officials, store owners and gun-control advocates.

The proposal would allow licensed dealers to ship firearms directly to in-state residents who complete online identity verification, pass a background check and wait seven days after local law enforcement is notified. Current rules generally require online buyers to pick up guns at physical stores and complete in-person checks unless they hold a qualifying permit.

Supporters say the change would modernize gun sales and reduce travel and paperwork burdens. Critics, including gun-control groups and small gun shop owners, say it could create public safety risks, increase the chance of theft or straw purchases and hurt brick-and-mortar retailers that rely on transfer fees and customer traffic.

Trump Jr. Denies Role In Proposal

The change could benefit Trump Jr., who serves on GrabAGun's board and owns more than 300,000 shares worth more than $700,000, down from more than $5 million last year, Reuters reported. As things stand, the proposed rule remains in a public comment period and could still be revised, delayed or withdrawn.

Andrew Surabian, a spokesperson for Trump Jr., told Reuters that the president's son had no role in the ATF proposal.

"Don is a lifelong businessman and vocal advocate of our Second Amendment rights," Surabian said, adding, "He does not interface with the Federal Government as part of his role with any company that he invests in or advises and had zero involvement in this particular decision."

MarketDash reached out to the Trump Organization and the White House for comment, but did not receive a response at the time of writing.

GrabAGun Sees Potential Business Opportunity

GrabAGun CEO Marc Nemati also told Reuters that neither he nor Trump Jr. knew the proposal was coming. He said the company is still analyzing the potential impact on its roughly $100 million in revenue. In a May news release, however, Nemati said, "We believe GrabAGun is uniquely positioned to capitalize on this potential opportunity."

The ATF projects that nearly half of all gun buyers, or about 3.3 million people a year, could eventually use home delivery.

Founded in 2010, GrabAGun is one of the country's leading online-first firearms retailers. The company went public through a SPAC merger with Colombier Acquisition Corp. II, generating more than $119 million in net proceeds and listing under the ticker "PEW." The SPAC was brought by 1789 Capital, where Trump Jr. is a partner.

Price Action: GrabAGun shares closed 0.86% higher at $2.35 on Thursday, surging another 6.81% to $2.51 in after-hours trading. The company's stock has dropped 85% over the past year and is down 22.7% so far this year.