Arizona Creates Sandbox Program for Fintech
Arizona recently became the first state in the U.S. to create a “regulatory sandbox” program to facilitate the development of innovative financial products and services, which either incorporate new or emerging technology or reimagine uses of existing technology. Arizona H.B. 2434 requires the State Attorney General to establish a sandbox program to which entrepreneurs may apply to test their innovations. Program participants will gain the ability to test their products on up to 10,000 Arizona state residents (and up to 17,500 residents in some instances), without the need to obtain certain state licenses that would otherwise be required. Program participants are also exempted from certain state financial sector regulations. The full bill can be accessed here.