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It is not the Federal government's business; it isn't the State governments' business; it IS the individuals' business and theirs alone.
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Not since the government put the stuff on Schedule I
in 1970. Right or wrong, it's been illegal for nearly 40 years. In the intervening time, there has been little legal opposition, and none of it very effective.
The ATF didn't just pass some new law; they're just reminding gun dealers of something they know anyway. Yet it becomes front-page news, and everybody panics like it's something new.
I'm not even sure if this is really a 2nd Amendment issue. I'd imagine that a court challenge would probably come from a different angle.