The FAA know as we all do that this is a very 'cheap' claim from these billionaires who have trawled for the lowest bar possible and want to hand out the accolade of astronaut to anyone who pays up.
Now that's not really what NASA et al want. They want you to think astronauts are brave. And so when men were in rocket aircraft in the 1960s breaking speed and altitude records, they wanted to give them something for that. Little astronaut wings. But just sitting on a small private aircraft to receive the same honour cheapens it.
So they've got them on "You just sat there and did nothing". I'm sure they'd like to get them on "You're not in space" but then they have to remove the honours they handed out to men who actually deserved them.
But the thing about truth is that the FAAs or NASAs version of it is neither here nor there. At 85km ... Branson is still in the territory of clouds. I don't care what NASA say, you don't get clouds in space.

Will be interesting to see if the pilots of Branson's aircraft get given astronaut wings because they weren't sat there doing nothing. That would put Branson's nose right out of joint.