I finally got around to reading the ATF memo pertaining to this. It can be seen here:
http://www.atf.gov/sites/default/fil...m_medium=email
They lay out all of their reasons for pulling the exemption, one of which is that there are now "handguns" that are made to fire this cartridge. They also explain that officer safety trumps sporting purposes where a small easily concealable handgun which officers most commonly face on the streets would be able to fire an armor piercing round.. How could an AR style handgun ever be considered "small and easily concealable"? Once again they are also using the argument of the round being constructed of certain materials rather than actual performance.
"From the perspective of law enforcement, however, the most relevant intent is that of acriminal who seeks to use ammunition capable of penetrating body armor when fired from ahandgun. If ammunition containing the metal content enumerated in section 921(a)(17)(B)(i)can be used in a handgun—the type of firearm most frequently used by criminals whom policeofficers encounter on the streets—then, from the law enforcement perspective, themanufacturer’s intent that the ammunition be used for hunting or target shooting (in rifles orhandguns) becomes irrelevant. The mere availability of handguns capable of using theammunition made of the enumerated metals creates the potential for diversion to criminals whocould use it in easily concealed firearms to defeat the protective vests worn by police officers –the exact officer safety concern targeted by LEOPA"





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