"Prior to the launch of the Starship SN8 test in December 2020, SpaceX requested a waiver to exceed the maximum public risk allowed by federal safety regulations." an FAA spokesman said Tuesday. "After the FAA rejected the request, SpaceX continued to launch the rocket."
The FAA is responsible for licensing launches and re-entry into US airspace by all US companies. The agency's role is to ensure that providers of these services comply with public safety rules, limiting the risk to the general population.
The FAA said it blocked SpaceX's Starship program after the company launched the SN8 test flight without the safety agreement. The FAA has asked SpaceX to conduct an investigation into the SN8 incident airlive.net.