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If the OP put a sig brace on a 16"+ rifle and shouldered it, would that break federal law? I would bet so but my opinion is worth what you pay for it.
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No, because this rifle is still a rifle, despite putting a Sig Brace on it. The ATF issue comes with shouldering a Sig Brace on a "pistol" with a short barrel - thus making that pistol into a short barreled rifle which requires NFA tax to be paid. You can not make a rifle into a pistol by removing the buttstock, it's still a rifle. Likewise, if you have a pistol that meets both the 16" barrel and 26" overall length requirements, you can legally convert it into a rifle by shouldering it, and there is no NFA violation because it is long enough to not require the tax. There is a similar difference with shotguns, but the basic rule is "Once a long gun, ALWAYS a long gun".
OP, in addition to the realization that your rifle can never legally become a pistol, and putting a short barreled upper on it is still making an NFA restricted SBR: You would likely also need to change the buffer tube, because a Sig Brace won't fit over the lug found on carbine buffer tubes (the square shaped part on the bottom that indexes the adjustable stock). It will go onto a pistol buffer tube, or a rifle one, but not a carbine. As for length, with a 16" barrel you only need 10 more inches to stay over the legal minimum 26" overall length. The receiver adds around 7" by itself, and a normal pistol buffer tube adds almost 5", so you should be good. You could run a tape down it to be sure, though.