A bill to establish a regulatory sandbox program under which agencies may provide waivers of agency rules and guidance, and for other purposes.

# Summary of S. 3998: Regulatory Sandbox Program Bill **What the Bill Would Do** S. 3998 would create a "regulatory sandbox" program that allows federal agencies to temporarily waive or suspend certain rules and regulations. A regulatory sandbox is a controlled testing environment where companies or organizations can operate under modified regulations to test new business models, technologies, or services without full compliance with existing rules. If passed, this bill would establish a formal framework for how agencies can grant these waivers and under what conditions. **Who It Affects and Key Provisions** The bill would primarily affect businesses, startups, and entrepreneurs looking to innovate in regulated industries (such as fintech, transportation, healthcare, or energy).

Federal agencies would gain authority to provide temporary relief from their rules for approved participants. The specific details about how long waivers would last, which agencies participate, and what safeguards exist aren't available in this summary, but regulatory sandbox programs typically include consumer protections and limits on the number of participants. **Current Status** S. 3998 was introduced in the 119th Congress by Senator Mike Lee (R-Utah) and is currently in committee, meaning it hasn't yet been debated or voted on by the full Senate. The bill remains in the early stages of the legislative process.