Catenaa, Thursday, August 14, 2025- US President Donald Trump signed an executive order on Wednesday to ease regulations for the commercial space industry, including steps to speed the licensing process for SpaceX launches.
The executive order directs the Secretary of Transportation to review regulatory requirements to “eliminate outdated, redundant, or overly restrictive rules for launch and reentry vehicles,” according to a fact sheet from the White House.
Trump asked the Transportation secretary to “reevaluate, amend, or rescind” Part 450, a section of the Federal Aviation Administration’s licensing process for launches. Originally intended to streamline rocket licensing, critics have said that the rules and regulations complicate the process.
Depending on its implementation, the executive order could directly benefit SpaceX, the world’s most prolific rocket launcher, as it ramps up test flights of its gargantuan Starship rocket.
Elon Musk, SpaceX’s CEO, was a prominent ally of Trump before the two publicly fell out over the billionaire’s criticisms of the president’s signature tax-and-spending bill.
The executive order is also poised to be a boon for the wider commercial launch industry, including Jeff Bezos’ Blue Origin LLC, United Launch Alliance LLC and Rocket Lab, many of which also plan to scale up launch operations.
Wednesday’s order further elevates the Office of Space Commerce, which currently resides under NOAA, to report directly to Commerce Secretary Howard Lutnick, a move industry proponents say would give more high-level attention and priority to commercial space activities.
Tesla shares were up by 0.7% on Thursday morning; the shares are still over 15% down so far in the year.
Trump’s directive also establishes a dedicated post at the Transportation Department to “advise on fostering innovation and deregulation in the commercial space industry,” according to the fact sheet, and calls for the appointment of an “Associate Administrator for Commercial Space Transportation” within the FAA to help reform regulations.
