The sharing economy impacts regulatory policies by necessitating adaptations to existing frameworks to accommodate new business models. As platforms like Uber and Airbnb disrupt traditional industries, regulators are challenged to protect consumers while fostering innovation. This can lead to conflicting interests between market access and public safety, creating a need for tailored regulations. Policymakers often grapple with issues related to labor rights, taxation, and licensing. Striking a balance in regulation is essential to ensure fair competition and address the unique challenges posed by the sharing economy.