The Federal Aviation Administration (FAA) currently regulates anything which flies over American airspace.
Except for rocket ships.
Obviously rocket ship launches haven’t been much of a concern over the life of the FAA. With the recent move towards commercial space flights, however, the FAA has decided to assert its authority and include this nascent industry under its control.
The FAA issued its first ever set of rules last week to prospective companies wishing to launch customers into outer space. Those seeking a license to do so (yes, they will be issued by the FAA) will have to abide by rules and regulations put forth by the FAA–such as mandatory training and staff medical evaluations.
Amazingly, the FAA will not demand any type of safety regulations for the next eight years. The belief was that instituting such safety precautions would impede the growth of the industry in its initial years. So, I repeat: companies offering flights to outer space do not have to prove that their vehicle is actually safe to do so. The FAA will, however, require that passengers sign a form relinquishing any rights to sue the government in case a tragedy does occur.
Wow. Better get your life insurance policy in order before taking off, folks!