Mark Goldstein of International Research Center (http://www.researchedge.com/) delivered an Arizona Fintech Innovation & Regulation presentation to an Arizona State University (ASU) Law Class for Professor Gary Marchant on 11/5/20 in Phoenix, AZ. Arizona’s financial technology (fintech) sector is among the most promising and fastest growing in our technology community. There’s a broad and robust fintech community here developing and delivering a diverse range of products and services that have the potential of disruption for traditional financial services companies, supply chain/logistics, the securitization of data, and others blockchain and distributed ledger technology (DLT) applications. Arizona has shown leadership in breaking down regulatory barriers with the potential to inhibit fintech innovation and emerging business models accelerating the use of electronic signature & smart contracts, creating a fintech regulatory sandbox, and most recently a property technology sandbox.

1. By Mark Goldstein, International Research Center
markg@researchedge.com, http://www.researchedge.com/
See SlideShare at http://www.slideshare.net/markgirc
© 2020 - International Research Center
Arizona Fintech
Innovation & Regulation
November 5, 2020


2. https://cronkitenews.azpbs.org/2017/08/15/
arizona-edges-to-front-of-states-eyeing-
blockchain-technology/

3. https://www.coindesk.com/
arizona-smart-contract-
clarity-winning-startups/

4. https://www.americanbanker.com/
opinion/regulatory-sandboxes-
can-help-states-advance-fintech
…
…

5. https://www.bizjournals.com/phoenix/
news/2018/03/22/arizona-sandbox-
law-seeks-to-spur-financial-tech.html

6. https://www.bizjournals.com/phoenix/news/2018/05/03/arizonas-
regulatory-sandbox-creating-buzz-among.html
By Angela Gonzales,
5/3/18
…

7. https://www.bizjournals.com/bizjournals/feature/growing-
arizona/2018/first-in-the-nation-arizona-s-fintech-sandbox.html

8. https://www.azag.gov
/fintech/participants
Current Arizona
FinTech Sandbox Participants
11/2/20

9. https://azbankers.org/ https://www.ccg-catalyst.com/

10. Arizona as an Innovation Hub
Energy Blockchain Peer-to-Peer & Transactive Marketplaces
Arizona Technology Council’s Policy Recommendations to the ACC
For Blockchain Use in Record Management & Energy Transactions
• Encourage the Arizona Corporation Commission (ACC) to work towards utilizing
blockchain for corporate records and filings initiating trials and pilots to develop
capabilities, gauge future direction, and, when appropriate, inaugurate full-scale
initiatives.
• Examine the potential to issue and trade securities on a blockchain platform.
• The ACC has opened a docket to examine the use of blockchain technology in Arizona’s
energy industry to help manage the distributed power generation and storage,
transactive energy, renewable energy credits, tokenization, IoT, cybersecurity, and other
applications for distributed ledger technologies on the grid.
Docket No. AU-00000A-18-0261
https://edocket.azcc.gov/Docket/Docket
DetailSearch?docketId=21628
https://www.azcc.gov/

11. Arizona as an Innovation Hub
FinTech: Electronic Signatures & Regulatory Sandboxes
• Early State legislation recognizing electronic signatures recorded on
blockchains & enabling validity of smart contracts. Subsequently
revised and refined. Arizona emerging as a choice location for
blockchain companies that develop apps based on smart contracts.
• Arizona’s Financial Technology (FinTech) Sandbox was the first in the
nation to create a state-level regulatory sandbox allowing limited
access to Arizona’s market for testing innovative financial products or
services under the purview of the Attorney General’s Office without
needing full state regulation for participating companies.
• Arizona’s Property Technology (PropTech) Sandbox signed into law
March 2019 to enable testing of residential real estate product &
service innovations (such as Offerpad, Opendoor & Roofstock).
• Municipalities are prohibited from regulating blockchain nodes &
mining in residential as well as commercial settings.
• Mature, versatile intrastate crowdfunding platform in place.
• Arizona Corporation Commission docket on energy & blockchain.
• Arizona Technology Council State FinTech Public Policy Positions
on: MTL Regulation, State Regulatory Reciprocity, Decentralization.

12. https://blockchain.asu.edu/
https://health.asu.edu/center-
law-science-innovation
https://www.gpec.org/connected
-place/blockchain/
Energy and Society Group
https://sustainability.asu.edu/lightworks
/focus-areas/energy-society/
https://azblockchain.org/
https://www.meetup.com/
Desert-Blockchain/
http://desertblockchain.com/
Blockchain Connected Place
Arizona
Blockchain
& FinTech
Organizations
https://azbankers.org/
http://energy-blockchain.org/
https://www.azcommerce.com/
https://www.azag.gov/
Public Policy Committee
https://www.meetup.com/
Hyperledger-Phoenix/
https://www.aztechcouncil.org/
public-policy/

13. • AZTC works to connect, empower, and engage technology companies
across the State of Arizona through educational seminars, business
legislative lobbying, and networking events encompassing a diverse
member community of over 800 science and technology companies,
professional service vendors, academic organizations, and nonprofits.
• Annual Public Policy Guide, Vote TechSmart election guide & lobbying
for State & Federal tech policy issues (https://www.aztechcouncil.org/public-policy/)
• SciTech Institute (https://scitechinstitute.org/) foundation produces:
• Arizona SciTech Festival now in its 9th year
• Chief Science Officer (CSO) Program
• Arizona Tech Connect Magazine (https://www.aztechcouncil.org/techconnect/)
• Fifteen working committees including Additive Manufacturing,
Cybersecurity, IoT, Law & Technology, MedTech & Optics Valley
Arizona Technology Council (AZTC)
https://www.aztechcouncil.org/ https://scitechinstitute.org/

14. Arizona as an Innovation Hub
Arizona Technology Council’s 2020 Public Policy Coverage
https://www.aztechcouncil.org/public-policy/

15. Current Copy Available by Request from:

16. MarketsandMarkets Blockchain Market Research Design

20. By Mark Goldstein, International Research Center
markg@researchedge.com, http://www.researchedge.com/
See SlideShare at http://www.slideshare.net/markgirc
© 2020 - International Research Center
Arizona Fintech
Innovation & Regulation
November 5, 2020
