RegTech stocks are back in focus as the Government Accountability Office presses the Federal Reserve to tighten bank supervision, refresh its rulebook, and clarify how it handles blockchain risks. For investors, this kind of regulatory pressure can reshape compliance budgets, technology demand, and risk management priorities across the financial system. This article looks at 3 stocks from the Compliance and Regulatory Technology Stocks screener that are directly exposed to these developments, and explains why the same headlines that worry some bank investors might create fresh opportunities, or fresh reasons for caution, in the compliance and regulatory technology space.

Paysafe (PSFE)

Overview: Paysafe is a global payments company that helps merchants and consumers move money online and in stores, from card processing and point of sale systems to digital wallets and eCash solutions for areas like iGaming, travel, streaming and retail.

Operations: Paysafe generates most of its revenue from Merchant Solutions at about US$918 million and Digital Wallets at about US$843 million, partly offset by around US$18 million of intersegment eliminations.

Market Cap: US$431.0 million

Paysafe sits at the crossroads of digital payments and compliance, which is exactly where tighter Fed supervision and fresh scrutiny of blockchain risks can redirect bank and fintech spending. The company is pushing deeper into iGaming, digital assets and specialized e-commerce with products like PaysafeWallet across 18 European markets and a new crypto funding option for US iGaming. At the same time, it contends with high leverage, ongoing losses and customer attrition pressure. Analysts have highlighted a potential path to higher earnings and margins, and the stock trades on a low P/S compared with peers. However, funding risk and governance turnover indicate that the road is not risk free. Many investors may be evaluating how that mix of regulation-driven demand, product expansion and balance sheet risk compares with alternatives when assessing Paysafe.

Paysafe’s low P/S and push into iGaming and digital assets can look like an overlooked reset rather than a stalled story, but the funding and governance overhangs matter. Review the DCF valuation analysis for Paysafe to see what the market might be missing.

London Stock Exchange Group (LSE:LSEG)

Overview: London Stock Exchange Group is a global provider of financial markets infrastructure and data, offering trading venues, indexes, benchmarks, analytics, and compliance tools that banks, asset managers, and corporates rely on to trade, manage risk, and meet regulatory requirements.

Operations: LSEG generates most of its revenue from Data & Analytics excluding FTSE Russell and Risk Intelligence at about £4.3b, Markets at about £3.5b, FTSE Russell at about £954m, Risk Intelligence at about £579m, and Other at about £8m.

Market Cap: £43.1b

Investors looking at RegTech exposure may find London Stock Exchange Group interesting because it sits at the heart of regulatory reporting, sanctions screening, and risk data just as US oversight and blockchain policy come under fresh review. Its Risk Intelligence tools, World Check services, and integrations such as Abaxx market data and the DMI partnership with StepStone show how LSEG ties together trading, data and compliance workflows. AI driven analytics and share buybacks aim to support earnings per share. The flip side is a rich valuation, funding that leans on external borrowing, and pressure from cheaper data and analytics rivals. The real question is whether LSEG’s role in compliance and cross border markets is being fully reflected in expectations or not.

London Stock Exchange Group’s premium pricing and central role in compliance and data can appear closely connected, yet the full story often lies in the detail. Read the analysis report for London Stock Exchange Group to see what current expectations might be missing.

NCC Group (LSE:NCC)

Overview: NCC Group is a UK based cyber security company that helps businesses protect their systems and software, offering services like incident response, penetration testing, identity and access management, and software escrow to support operational and regulatory resilience across sectors such as finance, healthcare and government.

Operations: NCC Group currently generates its revenue almost entirely from Cyber Security services at about £233.8 million.

Market Cap: £355.7 million

NCC Group operates in an environment of tighter regulatory focus, with banks and other regulated clients increasingly expected to prove that their cyber defences, software resilience and even blockchain related controls are robust and auditable. The company is refocusing on larger, multi year contracts in areas such as digital identity and operational technology. It is also using global delivery hubs and more automation in an effort to improve margins following a period of losses and revenue pressure. At the same time, NCC Group faces intense price competition, relies entirely on higher risk borrowing for funding, and pays a dividend that is not well covered by earnings. For investors, an important consideration is whether the quality of future cash flows will justify today’s valuation premium and optimistic analyst forecasts.

Accelerating pressure for provable cyber resilience puts NCC Group in a potentially stronger spot than its recent losses suggest, but the funding mix and dividend questions matter. Read the 2 key rewards and 1 important warning sign

The three RegTech stocks covered here are only a starting point. The full screener uncovers 35 more companies in the Compliance and Regulatory Technology space that come with equally compelling narratives around supervision, risk management and blockchain exposure. To identify, compare and analyze those ideas more efficiently, use Simply Wall St to filter the catalysts and stories that matter most to you through the Compliance and Regulatory Technology (RegTech) Stocks screener.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.