A Regulatory Sandbox for FinTech Innovation Emerges on the U.S. Playground

Check out this recent blog post from our K&L Gates and MSBA FinTech Chairperson Judith Rinearson and her colleague Eric Love:

A Regulatory Sandbox for FinTech Innovation Emerges on the U.S. Playground: What it means for Money Transmitters
Many FinTechs have benefited from government-established regulatory sandboxes in diverse jurisdictions such as Australia, the UK and Singapore. However, the U.S. has been noticeably slow to adapt these innovation-friendly programs. That is now changing.

Arizona recently enacted a new law (H.B. 2434) to create a Regulatory Sandbox Program (the “Program”) that will allow FinTech companies to temporarily test innovative financial products and services without being subject to money transmitter and similar licensing requirements in that state. The Program will be administered by the Arizona Attorney General (the “AG”) and is the first of its kind among U.S. states.