Regulatory sandboxes fail because they get the default rule wrong

With Darcy W.E. Allen.

Submission to the Independent Review of the Enhanced Regulatory Sandbox.

Summary: The Enhanced Regulatory Sandbox underperforms because it embeds the wrong default rule. Like most sandboxes, it treats experimentation as unlawful unless approved. This design predictably generates low uptake, adverse selection and weak learning. Effective reform requires reversing the baseline presumption from prohibition to permission through an open safe-harbour design.

Available in PDF here.