US Eases Drone Rules, Boosting Industry Growth for Companies Like Walmart and Alphabet

The US government has proposed a rule to allow commercial drones to fly beyond an operator's visual line of sight, potentially benefiting companies like Alphabet's Wing and Walmart. The change would end case-by-case federal approvals and streamline operations for drone delivery firms. The rule would require drones to meet industry standards and abide by new security rules. The move aims to enhance safety and boost growth in the drone industry.

The U.S. government has proposed a new rule that aims to significantly expand the operational capabilities of commercial drones by allowing them to fly beyond an operator's visual line of sight (BVLOS). This proposal, unveiled by Transportation Secretary Sean P. Duffy, seeks to streamline the current regulatory process and enhance safety in the national airspace system.

Currently, drone operators must either have visual observers on the ground monitoring flights or receive waivers and exemptions from the Federal Aviation Administration (FAA) to fly beyond visual line of sight. The new rule aims to eliminate these requirements, making BVLOS operations more accessible and efficient. This change is expected to benefit various sectors, including package delivery, farming, manufacturing, and emergency response.

Under the proposed rule, certain unmanned aircraft would have to meet industry consensus standards to operate beyond visual line of sight when flying at or below 400 feet. Operators would be allowed to fly their drones over people but not during large, open-air gatherings such as concerts or sporting events. Additionally, companies would have to adhere to new security rules related to cybersecurity and undergo threat assessments by the Transportation Security Administration (TSA).

The proposal has been met with support from industry leaders. Lisa Ellman, chief executive officer of the Commercial Drone Alliance, described the current waiver process as "unnecessarily complex and time-consuming," stating that it creates barriers to growth and increases the FAA's workload. Okeoma Moronu, head of regulatory policy and government affairs at Zipline, a drone delivery company, welcomed the rule, noting that it would allow operators to focus on building, scaling, and operating with clear rules instead of piecemeal exemptions.

The FAA has previously approved nearly 27,000 beyond visual-line-of-sight drone operations in 2023, up from fewer than 1,300 in 2020 [2]. The proposed rule is expected to further accelerate the growth of the drone industry, potentially benefiting companies such as Alphabet Inc.'s Wing unit and Walmart Inc., which have been exploring drone delivery services.

The comment period for the proposed rule will be open for 60 days following publication. The FAA encourages public input to ensure that the rulemaking process is inclusive and considers all relevant perspectives.

References:
[1] https://www.faa.gov/newsroom/trumps-transportation-secretary-sean-p-duffy-unveils-rule-unleash-american-drone-dominance
[2] https://www.bloomberg.com/news/articles/2025-08-05/walmart-alphabet-drone-ambitions-poised-for-boost-from-us-plan