AZ HB2906

Renames the "Regulatory Sandbox Program" to the "Financial Technology, Digital Assets and Blockchain Sandbox Program" throughout Arizona Revised Statutes Title 41, Chapter 55.

Adds "digital assets" to the definition of innovations that can be tested, defining digital assets as virtual currencies, cryptocurrencies, and other digital-only assets that confer economic, proprietary or access rights or powers.

Expands the sandbox program to explicitly include testing of digital asset innovations alongside financial products and services, allowing participants to test these innovations on a limited basis without obtaining state licensure.

Maintains existing restrictions on sandbox participants, including 24-month testing periods, consumer caps of 10,000 (or up to 17,500 with adequate capitalization), and transaction limits for money transmitter and consumer lender products.

Requires sandbox participants to disclose to consumers that innovations are temporary tests authorized through the sandbox program and are not state-endorsed or generally licensed.