Trump signs order easing commercial rocket launch rules, potentially aiding SpaceX

According to the White House, the order instructs the US Transportation Secretary to eliminate or fast-track environmental reviews for launch licenses handled by the Federal Aviation Administration (FAA). It also directs the secretary to remove “outdated, redundant or overly restrictive rules for launch and reentry vehicles.”

MAKE SPACE GREAT AGAIN 🇺🇸🚀@POTUS has signed an Executive Order to streamline regulations and foster a competitive commercial space industry, ensuring the United States maintains its leading role in the commercial use of space. pic.twitter.com/EIjv6op3nA

— The White House (@WhiteHouse) August 13, 2025

“Innovative permitting processes discourage investment and innovation, limiting the ability of US companies to lead in global space markets,” Reuters cited the order.

Potential winners: SpaceX and Blue Origin

While Musk’s SpaceX was not named in the order, Reuters noted it stands to gain the most from the changes, given its dominance in US launch activity, including missions for its Starlink satellite network, NASA, the Pentagon, and private customers.

Jeff Bezos’ Blue Origin, with its space tourism business, could also benefit from looser regulatory oversight.

Musk has long criticised FAA procedures, arguing that environmental impact studies, mishap investigations, and licensing reviews have delayed testing of SpaceX’s Starship rocket. The spacecraft is central to the company’s long-term plans and to NASA’s ambitions for returning astronauts to the Moon and eventually sending crewed missions to Mars.

SpaceX’s test program often pushes prototypes to failure to accelerate design improvements, an approach Reuters said has at times clashed with the FAA’s safety and environmental mandates. Earlier this year, the FAA halted Starship test flights for nearly two months after back-to-back explosions scattered debris over Caribbean islands and disrupted commercial air traffic.

The agency later expanded hazard zones before approving further launches.

(With inputs from Reuters)