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Correct. The issue was that the ATF tried to do an end-run around the legal process. Somebody in there did not watch that Schoolhouse Rock song about how bills become law... All that has to happen (federally, anyway) is that Congress must pass a law prohibiting them and the president has to sign it. But that's not what happened. The ATF -- under Trump's direction, mind you -- tried unilaterally to redefine an item that is not a firearm as a regulated firearm. What is and is not a firearm (and what is and is not a "machine gun" also) is already codified into law.
You can argue for or against unelected agencies having the ability to create new regulations with the force of law behind them without involving the usual system of checks-and-balances, but specifically in the case of the ATF they have repeatedly demonstrated that they are not able to use such a privilege in good faith. They would be (and are) exceedingly likely to use it as a cudgel to play these "legal yesterday, felony today" types of games with people so give themselves excuses to kick in doors and shoot people's dogs.
Various state laws already prohibit bump stocks. My state is one of them.