In general, with NFA, state/city law does trump federal law. There was a poster on another site who did a form 1 for a moltov cocktail and was denied because it was illegal in his state (posted a picture of the denied form 1 with reason being illegal by statute or something). You cannot own a NFA item in states where they are illegal. You would probably also be denied a form 20 into a state if the item was illegal there, also.
The same would hold true if one suddenly became a prohibited person. You have the stamp, but cannot legally possess the item.
I guess the question will be answered by the law, if and when it is written, i.e. grandfathered, time limit to dispose, keep but not transfer, etc. I think we have to keep in mind that at one point everything was legal until one day it wasn't. Laws restrict things, not allow them. If there is no law against it, it is legal.
nothing screams napoleonic warfare more than cannons roaring in the background
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