Regulatory sandboxes are a relatively new idea, but the aim behind them – improving performance – is unchanging.
As technology advances forward relentlessly, rapid change within society is often needed. Unfortunately, burdensome rules are slowing Nevada, which currently ranks 43rd on the Entrepreneur Regulatory Barrier Index.
To explain the potential benefits of regulatory sandboxes and what they can mean for residents, Nevada Policy is releasing State Permissions vs. Market Possibilities: Regulatory Sandboxes in Nevada.
Regulatory sandboxes represent a way around restrictions while improving innovation. They allow for the testing of new ideas on a small scale without being burdened by onerous directives, and they offer opportunities in many different business sectors, including insurance, gaming, transportation and energy.
And while entrepreneurs and small businesses often gain from the concept, consumers are the ultimate beneficiary. They’re able to take advantage of ideas and products that are freed up for use more quickly.
Several other states have embraced regulatory sandboxes, including neighbors Utah and Arizona. At present, Nevada allows regulatory sandboxes for financial technology companies, but has had no takers as yet.
In 2019, the Nevada legislature passed a bill to establish and administer the Regulatory Experimentation Program for Product Innovation. This program created Nevada’s first industry-specific regulatory sandbox for fintech.
Efforts during the 2023 legislative session to tweak the law to entice companies to embrace regulatory sandboxes fell flat.
Nevada Policy’s purpose with State Permissions vs. Market Possibilities is not only to highlight the positives but explain what actions the state can take to make the concept more appealing to entrepreneurs.
This includes passing legislation to create universal sandboxes, which would open experimentation to all current or future industries in one swoop. As it stands, separate legislation is required in Nevada every time a new industry wants to try the concept.
Society requires innovation to thrive. Progress relies on policies that foster experimentation and modernization. Unnecessary and outdated governmental barriers prevent our communities from reaching their potential.
With regulatory sandboxes, Nevadans will more quickly be able to determine if new approaches are worthwhile, rather than having to wait years or even decades to be able to adopt transformative technology.
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