First legislative proposal, the SANDBOX Act, simplifies regulation for American AI developers while preserving accountability 

WASHINGTON, D.C. – Today, U.S. Senate Commerce Committee Chairman Ted Cruz (R-Texas) released a legislative framework designed to promote American leadership in artificial intelligence. The framework outlines five pillars to guide Congressional efforts on AI policy and proposes a light-touch regulatory strategy to make safe AI deployment easier in the United States while protecting against emerging risks.

As part of the pillar’s first step, “Unleash American Innovation and Long-Term Growth,” Sen. Cruz is introducing the Strengthening Artificial intelligence Normalization and Diffusion By Oversight and eXperimentation, or SANDBOX Act. The bill creates a regulatory “sandbox,” a policy endorsed by President Trump’s AI Action Plan, that gives AI developers space to test and launch new AI technologies without being held back by outdated or inflexible federal rules. This bill includes safeguards to mitigate against health, public safety, or fraud risks.

Under the bill, AI deployers and developers would apply to modify or waive regulations that could impede their work. The Office of Science and Technology Policy (OSTP) would coordinate across federal agencies to evaluate requests under their purview. Congress would collect regular reports on how often rules were waived or modified to better inform future policy decisions and the regulatory structure applicable to AI. The SANDBOX Act would encourage American ingenuity, improve transparency in lawmaking, and ultimately lead to safe, long-term AI usage domestically.

Upon the introduction of his AI framework and the SANDBOX Act, Sen. Cruz said:

“Winning the AI race is about more than just technological advancement. If the United States fails to lead, the values that infuse AI development and deployment will not be American ones, but the values of regimes that use AI to control rather than to liberate.  If China wins the AI race, the world risks an order built on surveillance and coercion.

“President Trump recognizes this threat, which is why he took decisive action to bolster American leadership in AI, but executive orders alone aren’t sufficient. Following this new AI framework can turbocharge economic activity, cut through bureaucratic red tape, and empower American AI developers while protecting human flourishing. The SANDBOX Act is the first step. It embraces our nation’s entrepreneurial spirit and gives AI developers the room to create while still mitigating any health or consumer risks. The AI framework and SANDBOX Act ensure AI is defined by American values of defending human dignity, protecting free speech, and encouraging innovation.”

The SANDBOX Act has garnered support from notable organizations in the tech space like the Abundance Institute, U.S. Chamber of Commerce, and the Information Technology Council (ITI).

Background:

On July 23, 2025, the White House AI Action Plan urged the creation of a regulatory sandbox for artificial intelligence, echoing Sen. Cruz’s previous and similar call for such a program to help unleash American AI innovation.

Regulatory sandboxes have grown in popularity alongside recent technological innovation across industries. In 2019, Wyoming and Arizona pioneered the first regulatory sandboxes in the United States, modeled after the United Kingdom’s 2016 program, which was narrowly tailored to the financial technology industry. In 2021, Utah pioneered a regulatory sandbox for all industries, building on a regulatory sandbox for innovative legal services the state launched in 2020. More than fifty countries have established sandboxes to experiment with new technologies to provide financial services.

The SANDBOX Act will help bolster American leadership in AI by empowering developers to experiment while still preserving accountability. The legislation is a critical step in helping legislators shape future technology policy and ensure regulations keep pace with rapidly evolving technology developments.

To read more about Sen. Cruz’s AI framework, click HERE.

To read a one-pager of the SANDBOX Act, click HERE.

To read the bill text, click HERE.

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