Senator Ted Cruz, chairman of the Senate Commerce Committee, has introduced a legislative framework aimed at supporting American leadership in artificial intelligence (AI). The framework includes five pillars for Congressional AI policy and recommends a regulatory approach that aims to facilitate safe AI deployment while addressing emerging risks.
The first legislative proposal under this framework is the Strengthening Artificial intelligence Normalization and Diffusion By Oversight and eXperimentation (SANDBOX) Act. This bill proposes the creation of a regulatory “sandbox,” allowing AI developers to test and launch new technologies without being restricted by existing federal regulations that may be outdated or inflexible. The bill also incorporates safeguards to address health, public safety, and fraud concerns.
Under the SANDBOX Act, AI developers would be able to apply for modifications or waivers of certain regulations that could hinder their work. The Office of Science and Technology Policy (OSTP) would oversee coordination among federal agencies when evaluating these requests. Congress would receive regular reports on how often rules are waived or modified, with the goal of informing future policies related to AI regulation.
Senator Cruz stated:
“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 received backing from organizations including the Abundance Institute, U.S. Chamber of Commerce, and Information Technology Council (ITI).
The White House previously called for a regulatory sandbox for artificial intelligence in its July 23, 2025 AI Action Plan, aligning with Senator Cruz’s earlier advocacy for such measures.
Regulatory sandboxes have become more common as technology evolves across industries. Wyoming and Arizona introduced the first such programs in 2019 in the United States after similar initiatives began in the United Kingdom in 2016 focused on financial technology. Utah expanded on this idea by creating a sandbox for all industries in 2021 following its earlier legal services sandbox launched in 2020. Globally, over fifty countries have implemented sandboxes to support innovation in sectors like financial services.
Supporters argue that legislation like the SANDBOX Act will help lawmakers adapt regulations as technology advances rapidly.
