policy brief(forthcoming · 2026-06)
What the UK regulatory sandbox actually did for its digital banks — and what U.S. policy should learn
Institute of FAME — Policy Brief Series
Patrick B. Washington
Translates the Washington/Rehman/Lee 2022 JRFM findings on UK digital-bank performance under the FCA regulatory sandbox into specific design recommendations for CFPB and OCC sandbox proposals. Argues that sandboxes are survival mechanisms for firms killed by regulatory ambiguity rather than growth engines for firms already inside the regulatory perimeter — and that U.S. policy should be scoped accordingly.