The Arizona Attorney General’s Office will launch the first FinTech sandbox in the US, easing regulatory burdens for companies to test innovative FinTech products and services while remaining subject to the state’s consumer protection laws.

Navigating state regulatory requirements can often take several months and cost tens of thousands of dollars. The new sandbox will provide firms with relief by lifting some regulations and allowing some products and services to be live-tested in a marketplace limited to a capped number of consumers.

Arizona attorney general, Mark Brnovich, said: “Arizona has always been a state for big ideas and trailblazers, and this is just one more place where we are primed to be first. Our FinTech sandbox will open the doors to economic growth, new jobs, and innovative products that can make everyday life easier and safer.”

In separate news, the head of Department of Financial Services of New York, Maria Vullo, has spoken out against the US Treasury’s endorsement of regulatory sandboxes. “The idea that innovation will flourish only by allowing companies to evade laws that protect consumers, and which also safeguard markets and mitigate risk for the financial services industry, is preposterous. Companies that truly want to create change and thrive over the long-term appreciate the importance of developing their ideas and protecting their customers within a strong state regulatory framework.

“Toddlers play in sandboxes. Adults play by the rules,” Vullo stated.

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