Kyle Harrison
concept

Regulatory Arbitrage

Regulatory Arbitrage

One-line definition: Profiting from gaps, ambiguity, or under-enforcement in regulation rather than from a real product edge — in the MEDVI case, the post-COVID collapse of Telehealth oversight.

How sources describe it

  • A precondition for MEDVI independent of AI: the regulatory environment around telehealth had to be in “permissive ambiguity.” COVID threw the bumpers out — restrictions on telehealth prescribing relaxed dramatically and the oversight never fully came back. (source: The $1B Rorschach Test - Research)
  • “Telehealth is just regulatory arbitrage.” (source: The $1B Rorschach Test - Research)
  • Shades into outright Fraud when guardrails are reduced below minimum viable compliance — fake doctors, no clinical screening, the “move fast and break laws” playbook. (source: The $1B Rorschach Test - Research)

Where it shows up

  • The $1B Rorschach Test - Research — reframes the “AI” story as a regulatory-arbitrage story.

Referenced in