As more states experiment with “regulatory sandboxes” to give innovators whose products don’t fit within old policy models a proving ground, one critique has been surfacing: Participation varies widely. Wyoming has struggled to recruit a single applicant despite its prolific success in creating a crypto-friendly jurisdiction. In comparison, Hawaii’s Digital Currency Innovation Lab has admitted at least 12 participants in its first cohort and 15 in the second, Prominent digital currency companies such as SoFi, BlockFi Trading, Gemini Trust Company, and Robinhood Crypto are among the participants. For a more drastic comparison, look across the Atlantic, where the U.K.’s sandbox has received over 550 applications since its 2016 launch.
Why are some states more successful in recruiting sandbox applicants than others? How might they attract more entrepreneurship?
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