Gold fringe is used on the National flag as an honorable enrichment only. It is not regarded as an integral part of the flag and its use does not constitute an unauthorized addition to the design prescribed by statutes.
Records indicate that fringe was first used on the flag as early as 1835. It was not until 1895 that it was officially added to the national flag for all regiments of the Army. For civilian use, fringe is not required as an integral part of the flag, nor can its use be said to constitute an unauthorized addition to the design prescribed by statute. It is considered that fringe is used as an honorable enrichment only. (Military tradition)

Embroidered Fringed Flags are available on our site too.

A gold fringe flag was historically used during times of war in maritime admiralty law(which we are in right now as well). … These are also symbolic of admiralty law, which is the law of the sea. You can see the tassles hanging from the flag? This is also symbolic of admiralty law.

“Military REGULATIONS do prescribe the use of fringe on the National Color. These regulations are not, however, U.S. Law and only apply to military situations, not, for example, to the use of the flag in a court room or other non-military location.”Dave Martucci, 6 December 1996