Trump signs order to speed up commercial space launch licensing

On Wednesday, President Donald Trump issued an executive order seeking to loosen regulations on the commercial space sector. It instructs federal agencies to accelerate approvals for launch and reentry, a step expected to benefit the broader industry and SpaceX, led by former ally Elon Musk.

According to a White House fact sheet, the measure directs the Secretary of Transportation to review federal requirements and cut “outdated, redundant, or overly restrictive rules for launch and reentry vehicles.” The aim is to speed licensing while preserving safety for operators and the public.

Trump also told the department to “reevaluate, amend, or rescind” Part 450, the Federal Aviation Administration regulation that governs commercial launch licenses. Though intended to simplify approvals, many in the industry say the framework has become cumbersome and confusing.

Trump’s new order could affect SpaceX directly

How the order is implemented could directly affect SpaceX, now among the world’s most frequent launch providers, as it readies further test flights of its Starship system. Musk and Trump were once aligned, before a public spat reported by Cryptopolitan, that followed Musk’s criticism of the president’s tax-and-spending package.

Officials emphasized that the directive extends beyond any single company. It could also assist other operators, such as Jeff Bezos’ Blue Origin LLC, United Launch Alliance LLC, and Rocket Lab, as they look to scale up operations.

Part 450 dates to Trump’s first term, when the administration sought to streamline commercial launch licenses. The rule allows a firm to obtain one license that covers multiple missions of the same vehicle, provided it meets performance-based safety benchmarks and conditions set by regulators.

SpaceX urged Washington to revise those provisions, arguing that the FAA’s implementation has not matched the original intent. In a September 2024 post on its website, the company wrote: “We continue to be stuck in a reality where it takes longer to do the government paperwork to license a rocket launch than it does to design and build the actual hardware.”

Another component of the order would make the head of the FAA’s Office of Commercial Space Transportation a political appointee, increasing White House influence over how licensing priorities are set and carried out as the agency oversees commercial spaceflight.

The directive also elevates the Office of Space Commerce, currently within NOAA, to report directly to Commerce Secretary Howard Lutnick. Supporters say the shift would raise the profile of commercial space issues within the department and improve coordination.

Further instructions ask the Transportation Secretary to work with the chair of the Council of Environmental Quality to shorten or fast-track environmental reviews tied to launch and reentry operations.

Criticism from environmental advocates is expected

That change could prompt pushback from environmental groups and concerns about protecting launch ranges and nearby habitats in coastal states such as Florida, California, and Texas.

The order creates a new position at the Transportation Department to advise on innovation and deregulation, and calls for an “Associate Administrator for Commercial Space Transportation” at the FAA to lead regulatory reforms.

It also tells departments to assess whether states are hindering spaceport construction under the Coastal Zone Management Act, and to align procedures to reduce overlapping rules and speed spaceport projects.

Lastly, the order requires a “streamlined process for authorizing novel space activities,” defined as missions not covered by existing regulatory systems.

Want your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.