Space Regulatory Compliance Guide: ITAR, FCC, FAA & More

Why Regulatory Compliance Matters in Space

Space is one of the most heavily regulated industries in the world. Unlike terrestrial businesses that deal with a single regulatory framework, space companies must simultaneously comply with export control laws, communications regulations, launch safety requirements, environmental reviews, remote sensing restrictions, and international treaty obligations. Failure to comply can result in criminal penalties, loss of operating licenses, and irreparable damage to a company's reputation and business relationships.

The regulatory burden is not merely a cost of doing business — it fundamentally shapes corporate strategy. ITAR restrictions determine which international partnerships and customers are feasible. FCC licensing timelines dictate satellite development schedules. FAA launch licensing requirements influence launch site selection and vehicle design. Companies that master the regulatory landscape gain a significant competitive advantage, while those that underestimate it face delays, fines, and lost market opportunities.

The regulatory environment is also evolving rapidly. The FAA modernized its launch licensing rules in 2021. The FCC updated its orbital debris mitigation requirements in 2022. The Commerce Department is building new space traffic management capabilities. And international frameworks like the Artemis Accords are establishing norms for lunar and deep-space activities. Staying current with these changes is essential for any space company.

Key Regulatory Agencies

Space companies in the United States must navigate multiple federal agencies, each with distinct jurisdiction over different aspects of space activities. Here is a comprehensive overview of the primary regulatory bodies:

In addition to these federal agencies, space companies may need to comply with state-level regulations (particularly for spaceport operations), environmental laws (NEPA, Endangered Species Act), and industry-specific standards (NASA-STD-8719.14 for orbital debris, CCSDS for data standards).

ITAR and Export Controls Explained

The International Traffic in Arms Regulations (ITAR) is the most impactful regulatory framework for many space companies. Administered by the State Department's Directorate of Defense Trade Controls (DDTC), ITAR controls the export and temporary import of defense articles and services listed on the United States Munitions List (USML).

What Falls Under ITAR?

USML Category XV covers "Spacecraft and Related Articles." This includes launch vehicles, spacecraft buses, certain satellite subsystems, ground control systems designed for defense purposes, and associated technical data. The key determination is whether an item provides a "significant military or intelligence advantage." Items that are purely commercial and do not provide such advantage may fall under the Export Administration Regulations (EAR) instead.

The 2014 export control reform transferred many spacecraft components from the USML to the Commerce Control List (CCL), making them subject to EAR rather than ITAR. This was a significant liberalization that enabled US satellite manufacturers to compete more effectively in the global market. However, launch vehicles, certain propulsion systems, and military satellites remain firmly on the USML.

ITAR Compliance Requirements

• ▸Registration — Any company manufacturing, exporting, or brokering defense articles must register with DDTC (annual fee: $2,250 minimum).
• ▸Licensing — Export licenses are required for permanent and temporary exports of defense articles and technical data to non-US persons.
• ▸Technology Control Plans — Facilities handling ITAR data must implement physical and cybersecurity controls to prevent unauthorized access.
• ▸Deemed Exports — Sharing ITAR technical data with a non-US person within the United States is considered an export and requires a license.

Penalties for ITAR Violations

ITAR violations carry severe penalties. Criminal violations can result in fines up to $1 million and imprisonment up to 20 years per violation. Civil penalties can exceed $1.2 million per violation (adjusted annually for inflation). In recent years, several aerospace companies have paid multi-million-dollar settlements for ITAR violations, including inadvertent disclosures of technical data. Beyond fines, violations can result in debarment from government contracts, which can be an existential threat for defense- focused space companies.

Read our detailed ITAR compliance guide →

FCC Satellite Licensing Process

The Federal Communications Commission regulates all satellite communications involving the United States. Any satellite operated by a US entity, communicating with US ground stations, or serving US customers requires FCC authorization.

The FCC licensing process involves several key steps. First, operators must file an application that includes detailed technical parameters: orbital location (for GEO) or constellation design (for NGSO), frequency bands, transmit power, antenna characteristics, and interference analysis. The FCC conducts a public notice and comment period during which existing operators and other stakeholders can raise concerns about interference or debris risk.

In 2022, the FCC adopted updated orbital debris mitigation rules requiring satellite operators to deorbit LEO satellites within 5 years of mission completion (down from the previous 25-year guideline). Operators must submit a detailed debris mitigation plan, including casualty risk assessment for atmospheric reentry, collision avoidance capabilities, and passivation procedures.

For non-geostationary (NGSO) constellations, the FCC has introduced milestone requirements to prevent spectrum warehousing. Operators must deploy a percentage of their constellation within specified timeframes or risk losing their authorization. These milestones have driven deployment urgency for companies like Amazon, whose Project Kuiper constellation buildout is now well underway.

The FCC also regulates earth stations (ground terminals). The rise of consumer-grade terminals for services like Starlink has created new regulatory considerations around electromagnetic interference, especially in shared frequency bands. The Earth Stations in Motion (ESIM) rules govern terminals on aircraft, ships, and vehicles.

FAA Launch and Reentry Licensing

The FAA's Office of Commercial Space Transportation (AST) is responsible for licensing commercial launch and reentry operations in the United States. The regulatory framework was modernized in 2021 with the adoption of 14 CFR Part 450, replacing the previous vehicle-specific rules (Parts 415, 417, 431, 435) with a unified, performance-based framework.

The new Part 450 rules allow operators greater flexibility in how they demonstrate safety, as long as they meet quantitative risk thresholds. The primary safety metric is Expected Casualty (Ec), which must not exceed 1 x 10^-4 per mission for the collective risk to all members of the public. Operators must conduct detailed flight safety analyses including debris fragmentation modeling, blast overpressure calculations, and toxic dispersion analysis.

A launch license application typically includes vehicle description and performance data, mission profile details, flight safety analysis, ground safety plan, environmental review (NEPA), and financial responsibility (insurance) documentation. The FAA requires third-party liability insurance with coverage typically ranging from $100 million to $500 million depending on the mission profile and launch site.

The FAA also licenses launch sites (spaceports). As of 2026, there are 14 FAA-licensed launch sites in the United States, including commercial spaceports in Virginia (MARS), Texas (Boca Chica), and Alaska (Pacific Spaceport Complex). Each spaceport must obtain a site operator license demonstrating safety for the public and compliance with environmental requirements.

Spectrum Management and ITU Coordination

Radio spectrum is a finite resource essential to satellite operations. The International Telecommunication Union (ITU), a UN specialized agency, coordinates global spectrum allocation and satellite orbital assignments to prevent harmful interference between systems.

The ITU process for obtaining spectrum rights is lengthy and complex. For geostationary satellites, an operator must file through their national administration (the FCC for US entities) to the ITU's Radiocommunication Bureau. The filing goes through coordination procedures where the operator must negotiate with other administrations whose systems might experience interference. The entire process from initial filing to bringing a satellite into use can take 7-9 years.

For non-geostationary constellations, the ITU has established specific regulatory frameworks including milestone-based deployment requirements. The 2019 World Radiocommunication Conference (WRC-19) introduced rules requiring NGSO operators to deploy portions of their constellation within specified timeframes to retain their frequency rights.

Key spectrum bands for satellite services include Ku-band (12-18 GHz) for direct-to-home broadcasting and broadband, Ka-band (26.5-40 GHz) for high-throughput satellites, V-band (40-75 GHz) for next-generation systems, and L/S-band for mobile satellite services and direct-to-device. The growing demand for spectrum, particularly from mega-constellations, is creating significant coordination challenges and regulatory innovation.

Track spectrum allocations and auction results on SpaceNexus →

International Frameworks

Space activities are governed by a series of international treaties and agreements that establish the legal framework for activities in outer space. Understanding these frameworks is critical for companies with international operations or customers.

The Outer Space Treaty (1967)

The foundational treaty of space law, ratified by 114 countries. Key principles include: space is free for exploration and use by all states, no national sovereignty claims in space, states bear international responsibility for their national space activities (including commercial operators), and the duty to avoid harmful contamination of space and celestial bodies. This treaty is why governments must authorize and supervise private space activities.

The Artemis Accords (2020)

A set of bilateral agreements establishing norms for civil exploration of the Moon, Mars, and beyond. As of mid-2026, 71 nations have signed. Key provisions include commitments to transparency, interoperability, emergency assistance, registration of space objects, release of scientific data, preservation of heritage sites, and prevention of harmful interference. The Accords are particularly relevant for companies involved in lunar exploration and cislunar activities.

UN COPUOS Guidelines

The United Nations Committee on the Peaceful Uses of Outer Space (COPUOS) develops non-binding guidelines for the long-term sustainability of space activities. These include 21 guidelines covering space debris mitigation, space weather information sharing, registry practices, and regulatory frameworks. While not legally binding, these guidelines influence national regulations and industry best practices worldwide.

Track treaty obligations and regulatory changes on SpaceNexus →

CMMC and Cybersecurity Requirements for Defense Space

The Cybersecurity Maturity Model Certification (CMMC) is transforming cybersecurity requirements for the defense industrial base, including space companies. CMMC 2.0, which began rolling into contracts in 2025, requires third-party assessment of cybersecurity practices for companies handling Controlled Unclassified Information (CUI).

CMMC 2.0 has three levels. Level 1 (Foundational) requires 17 practices for companies handling Federal Contract Information (FCI) and allows self-assessment. Level 2 (Advanced) requires 110 practices aligned with NIST SP 800-171 for companies handling CUI and requires third-party assessment for prioritized acquisitions. Level 3 (Expert) adds 24 additional practices from NIST SP 800-172 for the most sensitive programs and requires government assessment.

For space companies, CMMC compliance is particularly challenging due to the distributed nature of satellite operations. Ground station networks, mission operations centers, telemetry data flows, and supply chain data sharing all create potential attack surfaces that must be secured. The Space Force has issued specific cybersecurity guidance for space systems that supplements CMMC requirements.

Companies seeking defense space contracts should begin CMMC preparation well in advance. Achieving Level 2 certification typically requires 12-18 months of preparation, including gap assessment, system security plan development, policy creation, and implementation of technical controls. Several Certified Third-Party Assessment Organizations (C3PAOs) specialize in aerospace and defense clients.

How SpaceNexus Helps with Compliance Tracking

SpaceNexus provides a comprehensive compliance management platform designed specifically for the space industry. Here is how our tools simplify regulatory compliance:

1. 1Regulatory Dashboard — Track all your licenses, filings, and compliance obligations across FAA, FCC, NOAA, and DDTC in one place via our Compliance Hub.
2. 2Spectrum Coordination — Monitor spectrum assignments, ITU filings, and interference environments via our Spectrum Management tool.
3. 3Orbital Slot Tracking — Track orbital position assignments and coordination status via our Orbital Slots tracker.
4. 4Treaty Monitor — Stay informed about international treaty developments, Artemis Accords updates, and UN COPUOS proceedings.
5. 5Regulatory Alerts — Receive automated notifications when regulations change, deadlines approach, or new rulemakings affect your operations.

Frequently Asked Questions