Akerman Partner Eric Goldberg told American Banker magazine that under current rules, many fintech (financial technology) companies can behave in many respects like banks, without needing to comply with banks’ strict regulatory burdens. However, “regulations are likely to change,” Goldberg said, “but the direction is still unclear—and any such change can toss fintech finances into disarray.”
Goldberg noted that "a lot of companies...have gained huge valuations recently because of the growth in special purpose acquisition company deals," or SPACs. These entities, used to take fintechs public through acquisition rather than a separate public offering, have become popular with fintechs and payment technology companies, he added.