[stcredzero]

Just because tiny sats are not detectable by US systems does not mean progress should be held back. Time for inept regulators to step aside.

So if there's a Kessler Syndrome due to a proliferation of satellites in a class of orbits and payload sizes, due to an inability to enforce regulations, you just shrug your shoulders? Responsible innovators would first develop a means to detect those tiny sats. Corner reflectors aren't inherently heavy or costly.

so it seems quite likely that this move was an attempt to protect crony firms with existing sats and incumbent business interests.

That also seems likely.