The Office of the Comptroller of the Currency (OCC) is pushing ahead with its Innovation Pilot Program, a mechanism that will allow regulators to work with financial services companies as new products are being developed. It’s meant to ensure regulatory cover for new products, but some industry leaders worry it could get in the way of innovation.

“Most cases shouldn’t require a special process like the OCC’s proposed pilot program,” said Rob Morgan, the vice president of emerging technologies at the American Bankers Association. “The more the OCC can reinforce that this is voluntary, the less banks will think it’s a de facto requirement.”

The OCC has yet to announce when the initiative will launch or the specifics of how it will operate, but the window for industry feedback on its design closed on June 14. The concern among industry representatives is the possibility that the voluntary approach to regulatory consultations could become a mandatory requirement. Andre Cotten, regulatory attorney with the Consumer Bankers Association, agreed that the OCC should clarify whether the program is voluntary.

According to the OCC, the program will function as a regulatory “sandbox.” A sandbox allows banks to work with regulators early on when developing new products in an effort to eliminate regulatory uncertainty. However, as recent examples have shown, financial companies often fear too much regulatory oversight curtails innovation, a perception fueling an “innovate first and ask permission later” approach. Indeed, one report suggested Robinhood took such a tactic when it launched its high-yield “checking and savings” account last year.

Others see regulators’ interest as a positive development. “Regulatory uncertainty is never a good thing, especially when we’re talking about providing innovations that expand access to credit,” said Kenneth Edwards, the associate general counsel of regulatory affairs at personal loan company Upstart. “I think it’s a really good proactive approach.”

Edwards said he envisions the program interactions being implemented through means like in-person meetings and phone calls. Upstart, however, is concerned that only OCC-supervised companies can participate in the dialogue.

Audrey Blater, senior analyst at Aite Group, wouldn’t speculate on whether the “sandbox” approach would evolve into more regulatory requirements, but she stressed that banks might need an extra push to ensure their participation in the process. “The funny thing about banks is they take [regulation] seriously,” she said. “Until things get real, I don’t know how much time, effort and money they’re going to throw at it.”