By Evan Grey Legal Contributor, SatNews
Editor’s Note: This is the second in a continuing series on the strategic evolution of space regulation. Part one, “The 200,000-Satellite Filing: When Commercial Loopholes Become State Weapons,” examined how speculative filings distort global coordination. Part two examines the U.S. regulatory response.
Last week, I explored how massive, speculative satellite filings are creating a form of regulatory congestion that increasingly complicates coordination for active operators. While launch cadence often dominates the headlines, the deeper constraint on the industry is administrative: the growing backlog at the International Telecommunication Union (ITU).
China’s recent filing for a 200,000-satellite mega-constellation has amplified this problem by introducing vast amounts of theoretical interference into global planning models. That filing cannot be ignored by operators or regulators, even if it never materializes. This Thursday, January 29, the Federal Communications Commission (FCC) intends to respond—not by addressing the ITU directly, but by tightening control over who may access the U.S. market.
At its upcoming Open Meeting, the Commission will vote on GN Docket No. 25-166, a Report and Order titled Transparency in Foreign Adversary Control. On its face, the item resembles other recent FCC process reforms, including the bipartisan push to streamline Part 100 licensing. In substance, however, it marks a structural shift in U.S. space regulation. Corporate transparency is no longer treated as a secondary consideration to technical compliance; it is becoming a prerequisite for market access.
For the first time, ownership opacity itself becomes a regulatory risk.
The Schedule A Baseline
Historically, satellite licensing has focused overwhelmingly on engineering sufficiency. If the link budget closed, spectrum coordination could be defended, and debris mitigation requirements were met, the corporate structure behind an applicant was often examined only at the margins.
GN Docket No. 25-166 establishes a new baseline. Under the Order, all Part 25 satellite and earth-station authorization holders, along with international Section 214 authorization holders, are placed into a designated reporting tier known as Schedule A.
Schedule A is comprehensive. It applies to legacy GEO operators and emerging multi-orbit systems alike. Every Schedule A entity must file a mandatory, definitive attestation—yes or no—regarding whether it is subject to Foreign Adversary Control. This filing is submitted through the FCC’s new consolidated portal, formally titled the Foreign Adversary Control System (FACS).
The shift is subtle but decisive. The FCC is moving from exception-based disclosure to universal verification. Silence is no longer a viable posture; every covered operator must affirmatively state its status, subject to FCC enforcement if that filing is deficient or misleading.
The 5 Percent Threshold and Capital Structure Risk
The most immediate operational impact will be felt in ownership analysis. In existing frameworks—most notably international Section 214—foreign ownership reporting has typically centered on a 10 percent benchmark. That standard has long accommodated passive capital from diversified international funds.
Under the new Foreign Adversary Control framework, the FCC introduces a 5 percent disclosure floor for any direct or indirect equity or voting interest associated with a designated foreign adversary, once an entity attests that it is subject to such control.
This change arrives at a precarious moment. Many legacy satellite operators face a 2026 debt-maturity wall that will require refinancing or recapitalization. Historically, sovereign wealth funds and global infrastructure vehicles have been natural sources of long-term capital.
The new rules complicate that path. Legal and compliance teams must now look through multiple layers of fund structure. A minority limited partner contribution tied to a restricted jurisdiction—at or above the 5 percent level—can transform what was once passive capital into a regulatory exposure. Operators are forced into a choice: accept the capital and invite FCC scrutiny, or narrow the investor pool to those that are geopolitically compliant.
A Deliberate Two-Track Strategy
It is not incidental that the FCC is voting on GN Docket No. 25-149 at the same Open Meeting. That companion item seeks to codify and simplify foreign ownership rules for trusted partners and allied jurisdictions.
Taken together, the two Orders clarify U.S. strategy. Barriers are being lowered for allies while scrutiny increases for potential adversaries. The intent is not blanket protectionism; it is selective integration.
For the Department of Defense, this approach aligns closely with its commercial space integration roadmap. As the Space Force operationalizes the Proliferated Warfighter Space Architecture (PWSA), commercial constellations are shifting from peripheral service providers to active nodes in operational systems. In that context, chain-of-custody principles apply to ownership as much as they do to data.
GN Docket No. 25-166 supplies the verification layer for that integration by establishing a standardized ownership-transparency baseline across the commercial sector.
Streamlined Enforcement and Market Exclusion
The most consequential feature of the Order may be procedural. The FCC delegates streamlined revocation authority to the Enforcement Bureau, creating a faster mechanism to address authorizations that fail to meet the new disclosure requirements.
This authority does not—and cannot—remove filings from the ITU’s Master International Frequency Register. That remains a matter of international coordination. What it does do is more economically decisive: it allows the FCC to revoke or deny U.S. market access.
By stripping landing rights, the Commission can effectively demonetize speculative systems. Satellites may launch, but without access to the world’s largest commercial market, they become stranded assets.
If an applicant cannot produce a clean Schedule A attestation—because beneficial ownership cannot be verified, or because the entity is structured to obscure control—the FCC now has a defined, expedited pathway to dismiss or revoke authorization. While this does not “clear” the ITU queue, it materially reduces the number of speculative systems that can operate commercially, potentially easing pressure in contested orbital regimes such as Direct-to-Device (D2D).
The New Market Reality
For industry leadership, the implications are immediate. Cross-border M&A now carries an added layer of geopolitical due diligence. Minority capital is no longer neutral by default, and deal risk must be priced accordingly.
At the same time, the Order creates a competitive signal. For U.S. and allied operators, a clean Schedule A filing becomes a marketable asset. As defense and intelligence agencies deepen their reliance on commercial infrastructure—illustrated by the Space Force’s recent ~$50 million award to Northwood Space to augment the Satellite Control Network—verified ownership transparency is increasingly likely to function as a prerequisite for prime contracts.
The era of purely permissionless growth is giving way to one of verified integration. In the 2026 space economy, corporate transparency is no longer just regulatory hygiene. It is fast becoming both a financial asset and a license to operate.
About the Author
Evan Grey is a legal contributor for SatNews. A lawyer with a focus on regulatory policy and international relations, he specializes in the evolving geopolitical and industrial frameworks of the global space sector.