The US District of Columbia (DC) has established a Financial Services Regulatory Sandbox and Innovation Council (the Council).
The Council’s main aims will be to analyse and report on the viability of implementing a financial services regulatory sandbox in DC, and to develop a blockchain and innovation regulatory framework to promote financial services innovation in the district.
It is hoped the sandbox could foster innovation and competition, as well as helping regulators understand how innovative firms are evolving and adapt regulatory rules to better suit the changing landscape.
If a sandbox is feasible, the Council, which will be comprised of professionals from a range of financial services industries, including captive insurance, will provide legislative, programmatic and policy recommendations for the mayor’s consideration.
The Council will be chaired by Stephen Taylor, the commissioner for the Department of Insurance, Securities and Banking, and will be required to report on its findings in the first six months.
Taylor said DC want to be on the “cutting edge” and utilise the “intersection of technology and financial services to benefit our residents and businesses”.
He commented: “This initiative has the potential to provide new opportunities for consumers to create, build and protect wealth.”
“With the department’s regulatory authority of all three major financial industries, we are well positioned to provide a full-service and integrated regulatory sandbox.”