I still don’t understand why it is the FAA that licenses launches in the first place. The FAA’s role should be about the same as the coastguard’s - managing potential traffic conflicts. The EAA or ASPCA or the NACAA probably know about as much about building and launching rockets as the FAA.
NASA, which does employ a few actual rocket scientists and which has actual experience in space operations, should be given a new regulatory mandate (and the budget to go with it). They have the experience to meaningfully investigate incidents and accidents. They also have a slightly broader risk tolerance - something that the nascent space industry needs in order to grow.
For the record, I’m not advocating for wild west space ops. I just think that we need to understand that the learning curve for commercial space flight will involve more risk than the FAA’s culture is built to accept.