The move represents a blow to the space tourism firm as it prepares to carry paying customers following its first fully-crewed test flight.
''The FAA is overseeing the Virgin Galactic investigation of its July 11 SpaceShipTwo mishap that occurred over Spaceport America, New Mexico,'' the agency said in a short statement.
''Virgin Galactic may not return the SpaceShipTwo vehicle to flight until the FAA approves the final mishap investigation report or determines the issues related to the mishap do not affect public safety,'' it added.
The company responded with a statement saying: ''We take this seriously and are currently addressing the causes of the issue and determining how to prevent this from occurring on future missions.''
It added it was working closely with the FAA ''to support a thorough review and timely resolution of this issue.''
The FAA's decision came after a report by the New Yorker said the flight experienced cockpit warnings about its rocket-powered ascent that could have jeopardized the mission.
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