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Arizona Becomes First Sandbox State for Fintech Products

March 22, 2018, 10:45 PM

Arizona became the first state to greenlight a program lifting some regulations for fintech companies testing new products and services, after Gov. Doug Ducey (R) signed a “regulatory sandbox” bill into law March 22.

The sandbox idea, implemented in dozens of countries throughout the world, aims to give businesses a controlled area to try innovations without burdensome requirements. Some consumer advocacy groups, though, worry customers could be on the hook for predatory or failed fintech products.

Other states could soon follow Arizona’s lead, with similar legislation already introduced in Illinois and being considered elsewhere. Federal regulators such as the ...