The sharing economy presents new regulatory issues by raising inquiries into market innovation and government intervention. This research focuses on policy areas that have not received much attention in the current debate on the sharing economy, particularly in the tourism literature. Based on the survey on local government officials in the U.S. cities and counties (n=599), the research aims at (1) exploring stakeholder groups that are perceived to be influential in acting on legislation among policymakers and (2) examining determinants that influence legislative status with a focus on sharing economy innovations. The results indicate that legislative status is influenced by stakeholder groups who actively engaged in legislation with different objectives as well as jurisdiction characteristics such as population size and geographical region. The study offers insights into how policymakers keep up with the tremendous innovations that take place in the tourism industry.