Arizona Attorney General

Mark Brnovich



Op-Ed: Regulatory Sandboxes Can Help States Advance Fintech

Attorney General Mark Brnovich is calling for Arizona to become the first state in the country to adopt a “sandbox” like regulatory environment that would reduce fintech entrepreneurs’ barriers to entry into local markets in a new op-ed penned for American Banker magazine. Key to creating sandbox regulatory systems is ensuring core consumer safeguards are not sacrificed. Sandboxes have already been implemented in countries such as the United Kingdom, Singapore, UAE, Malaysia, and Australia.

In sandboxes, startups and entrepreneurs can launch products on a limited scale in a regulatory “safe space” to participating consumers on a temporary basis to test innovative products, services, business models, and delivery mechanisms in the real market without incurring the regulatory costs and burdens that would otherwise be imposed.  

This environment is important for early-stage entrepreneurs who do not have the financial resources or access to legal counsel to navigate the burdensome regulatory process. Brnovich also notes that successfully testing a product on a small scale facilitates a company’s efforts to raise the capital necessary for an expanded launch of the tested product in a regulated market.

The full op-ed can be read here: