Texas Tech University

Rawls College Professor Warns Against Unregulated Financial Technology

Ashlyn Grotegut

December 20, 2022

Mike Mauldin believes fintech, crypto, non-banks and other unregulated entities represent substantial risk to society and national security.


The recent collapse of financial technology (fintech) giant FTX, along with the “excessive fraud” committed during the COVID-19 pandemic by the fintech industry with the Paycheck Protection Program (PPP), has reignited the argument that fintechs, cryptocurrency, non-banks and other similar entities should fall under the same regulation as normal banking entities. 

Mike Mauldin believes it is urgently time to institute meaningful regulation in fintech. He is available to discuss what steps need to be taken to protect society from the “excessive fraud” that has resulted in severe losses for thousands of investors worldwide.


Mike Mauldin, F. Scott Deuser Director Chair for Excellence in Banking; Director of the Excellence in Banking Program, (806) 834-8851 or Mike.Mauldin@ttu.edu

Mike Mauldin
Mike Mauldin

Talking Points

  • Traditional banking systems are “heavily regulated,” according to Mauldin. While he recognizes the importance of technology in the banking system, he said banking activities conducted by fintech during the past few years have escaped regulation such as the U.S. Patriot Act, Community Reinvestment Act, Fair Lending, Bank Secrecy Act, or compliance requirements. 

  • Mauldin is concerned fintech lacks terrorist monitoring used for national security. 

  • Mauldin calls for these unregulated financial market entities to immediately be subject to the same oversight for safety, soundness and consumer protection as insured commercial banks and other insured deposit institutions. He believes this will ensure customers are not fooled into believing they are protected as in the nation's Federal Deposit Insurance Corporation (FDIC) insured banking system. 


  • “These non-bank highly visible entities have flown and continue to fly under the regulation radar. How can this be with the obvious evidence of continued public monetary loss and fraud? Who is protecting people from this enormous risk?”

  • “Given the danger these unregulated products and companies pose, consumers should be encouraged to be aware of who they are doing business with. And any investment decision should be made with caution and complete understanding.”

  • “Buyers should be aware there are systems that may make their monetary transaction or process easier, but in many cases, their transaction is at risk and may not be held where your money is insured.”