If you file your Form 1 NFA SBR registration for your AR/AK Pistol with Stabilizing Brace and it is denied, you are IMMEDIATELY in possession of a felonious firearm; therefore, you, yourself, are now able to be charged and arrested for owning a firearm that you are not lawfully able to own. Along with this, you have notified the ATF that you are in possession of this firearm automatically by your denied filing and provided all the needed information for them to take action and enforce this.
Watch this video about it straight from ShotShow 2023 where a Gun Owners of America attorney explains the fatal flaw.
It’s not a coincidence that you will be a potential felon charged with a felony. Convicted Felons cannot legally own a firearm. It’s a convenient win-win loophole that they’ve set up. Felons can legally own black powder pistols and rifles however.