And in a stark warning, Kerr also insisted that the Ibrox support will mobilise themselves to ensure the ramifications of the ban will be felt by ALL SPL clubs.
Kerr said: "There is widespread anger among the Rangers fans, as you can well imagine. We will take a stand now."
Last night's decision by a three-man appeal body to uphold the original punishment of a 12-month transfer embargo on players over the age of 18 has been met by a furious response from the Rangers support and Kerr has warned that they will not take the decision lying down.
Rangers' administrators were today weighing up their options but look certain to take legal action against the SFA, possibly in civil courts or the Court or Arbitration for Sport (CAS) in Switzerland.
Several first-team stars have cut-price get-out clauses in their contracts after agreeing to wage cuts and, should they activate them and leave, Gers would be unable to sign replacements. Already, Everton are eyeing a swoop for Steven Naismith, who has a £2million trigger release.
The Rangers Supporters' Assembly will now:
*Lobby the club to withdraw from the Scottish Cup next season.
*Plan to boycott all away games.
*Put pressure on sponsors.
*Call for Rangers players to withdraw from the Scotland squad to face the USA in Florida later this month.
Kerr added: "We feel that while our circumstances are unique, they are not exceptional, yet the SFA seem to be focused on making some kind of an example here.
"There have been other clubs this season who have not been able to pay the wages of their players, yet there has been very little in the way of punishments handed out for that. Ultimately, we have to do what we think is the best course of action now.
"We met when the SFA first announced the transfer embargo and had preliminary discussions about what to do. But at the time we felt we were jumping into it too quickly, and we wanted to wait and see whether or not common sense would surface at an appeal.
"That hasn't been the case and the club need to take this fight all the way. They have to challenge this tooth and nail.
"The body of opinion is definitely behind taking the players out of the national team, although personally I would have to say that I am cautious about pushing for such a thing because it isn't particularly fair that the international career of a player is hampered because of this situation.
"But at the same time, if Allan McGregor or Lee Wallace or Steven Whittaker get injured when they are playing for Scotland, how do we replace them?"
Kerr also believes that the whole of Scottish football will be punished because of the embargo.
He added: "When Rangers signed Steven Naismith from Kilmarnock, the sale went a long way to ensuring that the Rugby Park club did not go into administration.
"There are lots of players in the SPL that I am sure Rangers will have been looking at, and the bottom line is that buying these guys from other Scottish clubs benefits the game.
"If you take that out for a year then I am sure there will be one or two clubs who will feel it.
"The Rangers support need to do everything within their power to make a stand now.
"We are bitterly disappointed at the decision to uphold the embargo ... but it is not finished yet."