Regulatory Sandboxes
Your State Needs a Sandbox
Innovators across the country are often punished. Uber and Lyft drivers were issued tickets. Food trucks have been subjected to a maze of regulations. Tesla’s direct-sale approach meant they couldn’t even sell their cars in many places.
But big companies can often strong-arm their way through the political process. It’s the little guy that’s left languishing—would-be entrepreneurs whose way of “doing things differently” is prohibited by a law or regulation written in years past.
Enter the regulatory sandbox—a legal process to give a leg up for innovators who want to safely offer their product or service while the law catches up.
Impact Map
Or select your state:
Federal Sandbox Introductions and Implementations
- In 2024, North Carolina Congressman Patrick McHenry introduced a fintech sandbox.
- In 2024, South Carolina Congressman William Timmons introduced a bill to reestablish the CPFB’s compliance assistance sandbox.
- In 2023, Tennessee Senator Marsha Blackburn introduced a quantum sandbox for near-term applications.
- In 2023, California Congressman Jay Obernolte introduced a quantum sandbox for near-term applications.
- In 2022, Tennessee Senator Marsha Blackburn introduced an agriculture sandbox.
- In 2022, Utah Senator Mike Lee introduced a universal sandbox.
- In 2021, North Carolina Congressman Patrick McHenry introduced a digital tokens sandbox.
- In 2019, North Carolina Congressman Patrick McHenry introduced a fintech sandbox.
- In 2018, the Consumer Financial Protection Bureau (CFPB) implemented a compliance assistance sandbox.
- In 2017, the Federal Aviation Administration established a drone sandbox.
- In 2016, North Carolina Congressman Patrick McHenry introduced a financial technologies, or fintech, sandbox.
Local Sandbox Introductions and Implementations
- In 2022, Detroit City Council introduced an autonomous vehicles sandbox for Detroit, Michigan.
- In 2021, Mayor Muriel Bowser’s office introduced a financial technologies (fintech) sandbox for Washington, DC.
Two Models
Industry-Targeted
If your state does not yet have an regulatory sandbox, it’s generally best to consider first starting with a single industry that is ripe for reform, to validate the concept and acclimatize elected officials and regulators to this new approach. Our proposal can be easily adapted to focus on any specific industry.
All-Inclusive
Ultimately, the state should not be favoring only one or a few industries with this flexible regulatory model. An all-inclusive sandbox benefits businesses in any industry with a comprehensive approach that allows regulators to work with innovators, not against them, in freeing up the economy.
Resources
Policy Brief
Our brief analysis will get you up to speed on why sandboxes are essential to protect entrepreneurship.
One Pager
Use our simple document to explain the issue succinctly to elected officials, the media, or businesses.
Video
Our short video helps you understand why sandboxes are critical for your state’s economic success.
Podcast
Listen to a brief conversation on how these sandboxes work and why they’re important.
Rees Empey, Director of State Government Affairs
Welcome to our regulatory sandbox outreach page! Our goal is to build partnerships with legislators and organizations across the countries to support them in seeking adoption of this model legislation in every state. If you work with a think tank, advocacy group, or are an elected official, I’d love to connect with you and discuss how we can be helpful to you in implementing regulatory sandboxes in your state! Please reach out and let’s chat.