Regulatory Sandboxes Offers NV a Spot at Forefront of Innovation

Kevin Dietrich

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 Unnecessary and outdated governmental barriers prevent our communities from reaching their potential.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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Kevin Dietrich

Kevin Dietrich

Kevin Dietrich joined Nevada Policy in 2022.

He has more than 20 years of experience in communications, including serving as the director of communications and marketing for the South Carolina Bankers Association, working as a speechwriter for South Carolina governor Mark Sanford and assisting with internal communications for CVS Caremark.

Kevin graduated from the University of Maine with a degree in Journalism and a minor in History. A fifth-generation Californian, he spent a decade as a journalist, working for newspapers in Florida, New York, New Hampshire and South Carolina.