"Will it be safe for fintechs to play in Arizona’s new regulatory sandbox?" by Jonice Gray Tucker (Payments & FinTech Lawyer)
Payments & FinTech LawyerJonice Gray Tucker, Christopher Robins
On 22 March 2018, Arizona’s Governor signed H.B. 2434, establishing the first state-level regulatory ‘sandbox’ for FinTech companies in the US. The Arizona regulatory sandbox is designed to reduce regulatory burdens by creating an environment in which participants can develop and test innovative financial products and services without first obtaining a licence. The creation of the sandbox was due, in large part, to a recognition by Arizona legislators that the time and costs associated with understanding and navigating state regulatory regimes have created significant barriers to entry for a number of FinTech companies. Although Arizona’s regulatory sandbox is an important step in promoting financial innovation in the US, the programme does not alleviate certain challenges posed at federal level, or from other states. Jonice Gray Tucker, of Buckley Sandler LLP, provide an overview of Arizona’s regulatory sandbox, potential federal actions that may be on the horizon, and practical steps that new entrants into the US market can take in order to navigate the complex web of federal and state laws and regulations.
Originally published in Payments & FinTech Lawyer; reprinted with permission.