First in the Nation: Arizona’s Regulatory Sandbox


  • Paul Watkins
  • Evan Daniels
  • Stuart Slayton
Publish Date:
December 22, 2018
Publication Title:
Stanford Law & Policy Review
Journal Article Volume 29 Page(s) 1-17
  • Paul Watkins, Evan Daniels, & Stuart Slayton, First in the Nation: Arizona's Regulatory Sandbox, 29 Stanford Law & Policy Review 1 (2018).


Consumer protection regulators have a dual mandate to protect consumers by preventing both fraud and market distortions. Regulatory sandboxes have the potential to mitigate the market distortions created by regulatory barriers to entry and regulatory uncertainty, while maintaining consumer protection through monitoring and enhanced enforcement capabilities. Regulatory sandboxes have been utilized around the world to facilitate innovative financial products and services. Arizona has created the United States’ first regulatory sandbox program. This article identifies the need for regulatory sandboxes, describes sandboxes around the world, discusses the specific details of Arizona’s sandbox, and explains how Arizona is leading the way for regulatory innovation in the United States.