The Trump Administration Recently Announced a New Policy That Aims to Deregulate the Commercial Space Industry
President Donald Trump’s initiatives to remove regulatory roadblocks go all the way to the final frontier. The Trump Administration recently announced a new policy that aims to deregulate the commercial space industry.
The global space economy is closing in on $350 billion and is expected to become a multitrillion-dollar industry. It’s not all about traveling to Mars or creating a moon colony, commercial space opportunities include space tourism, mining, and satellite communications.
In 2010, President Barack Obama announced a new national space policy, which focused on encouraging and facilitating the growth of a U.S. commercial space sector. However, as countries across the globe strive to win the latest “space race,” the privately funded U.S. space industry maintains that it is still being hampered by federal regulations that have failed to evolve with technology.
Further assistance may be forthcoming. Since taking office President Trump has signaled that the U.S. space industry is a priority. Last June, President Trump signed an Executive Order reconvening the National Space Council for the first time in 24 years. On December 11, 2017, he signed Space Policy Directive-1, which directed the National Aeronautics and Space Administration (NASA) to return American astronauts to the Moon with the ultimate goal of establishing human missions to Mars.
Space Policy Directive 2
On May 24, 2018, President Trump signed Space Policy Directive-2 (SPD-2), which reflects recommendations made to the President by the National Space Council. Among other mandates, SPD-2 directs the Secretary of Transportation to establish a new regulatory system for managing launch and re-entry activity. The new rules must specifically “consider requiring a single license for all types of commercial space flight launch and re-entry operations and replacing prescriptive requirements in the process with performance-based criteria.”
Space Policy Directive 2 directs Secretary of Commerce Wilbur Ross Jr. to “transmit a plan to create a ‘one-stop shop’ within the Department of Commerce for administering and regulating commercial space flight activities.” In a recent op-ed in the New York Times, Ross highlighted the benefits of consolidating federal oversight.
“At my department alone, there are six bureaus involved in the space industry. A unified departmental office for business needs will enable better coordination of space-related activities,” Ross wrote. “When companies seek guidance on launching satellites, the Space Administration will be able to address an array of space activities, including remote sensing, economic development, data-purchase policies, GPS, spectrum policy, trade promotion, standards and technology and space-traffic management.”
Under SPD-2, federal agencies are also directed to submit a report to President Trump on “improving global competitiveness of United States space radio frequency spectrum policies, regulation, and activities at the International Telecommunication Union and other multilateral forums.” In addition, the Directive requires the National Space Council to review export licensing regulations affecting commercial space flight activity and deliver recommendations to the President within 180 days.
What’s Next?
The Trump Administration’s latest policy directive is a step in the right direction. However, more must be done for the U.S. commercial space industry to reach its full potential, including additional measures to modernize and streamline federal regulations. For many of these reforms, Congress must also get involved.
If you have any questions or if you would like to discuss the matter further, please contact me, Jason A. LaBerteaux, or the Scarinci Hollenbeck attorney with whom you work, at 201-806-3364.
Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public
Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]
Understanding Chattel Paper: A Key Component in Secured Transactions
Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
