"Armor Piercing Ammunition" (a technical, legal term) is banned. See the definition of "Armor Piercing Ammunition" in US code: Title 18, 921 (17).
The manufacture and sale and use in a crime of violence of Armor Piercing Ammunition is prohibited.
I think the provision for determining "sporting purposes" allows BATF to exempt .223 from the APAmmo ban.
Note in the definitions that "Armor Piercing Ammunition" is handgun ammo. Rifle ammo, no matter how much hardened steel it can penetrate, is not "Armor Piercing Ammunition". By definition.
IANAL
Thanks - I hadn’t realized the distinction between rifle and handgun ammo.