The suborbital launch legislation seems to have finally given up the ghost, at least for this year. It's not necessarily a bad thing, particularly given the fact that it almost passed a few weeks ago with a pill that would have poisoned the new suborbital passenger industry by overregulating it.

As Nathan Horsley points out in comments at Space Politics,

While a clear statutory basis for manned launch licensing is a desirable goal in that it would make it easier for new companies to tailor their designs to the regs, the existing companies should be able to go ahead under the current regime. The fact is that even under a new regulation, the licenses are still going to have to be tailored to each individual craft and mission plan (or at least series of similar mission plans). Further, the new push to include passenger safety as a factor in licensing is very dangerous. While the newest compromise limits this to situations where there has already been an accident, this is at best a marginal gain for the launchers in terms of insurance availability and litigation risk.

Bottom line, given that the FAA AST is doing a pretty good job under the current regime, sending the legislators back to the drawing board is not so bad a thing, and won't even force launchers overseas.

Also, more from Alan Boyle here.

Perhaps it's merely stunned.