Yesterday, the bipartisan House Select Committee on China alleged that Webull Corporation (NASDAQ:BULL), a regulated broker and alternative investment platform, is closely aligned with the People’s Republic of China (PRC) and its rulers, the Chinese Communist Party (CCP).
Companies in China are well known to do the CCP’s bidding when asked. The authoritarian regime uses its power to influence business activities while gaining access to data and other information. China has become the United States’ and the West’s top adversary, as it seeks to usurp the US’s top spot as the world’s most influential superpower.
The Committee report (available below) claims:
“The evidentiary record developed by the House Select Committee on the Strategic Competition between the United States and the Chinese Communist Party reveals a profound gap between this public marketing and the firm’s operational reality. In truth, Webull’s ownership architecture, technical workforce, technology infrastructure, cross-border data routing, corporate financing, and compliance frameworks are tied in structural ways to the People’s Republic of China (PRC). These national security concerns have escalated since October 2025, when Webull transitioned into carrying customer cash directly, transforming a front-end software risk into a structural exposure of billions of dollars in American capital.”
Committee Chairman John Moolenaar and Ranking Member Ro Khanna each issued comments on the report. Moolenaar stated:
“Webull’s China-based operations put American investors and their data at risk. China’s national security law compels all Chinese citizens to comply with demands for information from the CCP, and a stock brokerage storing data in China is no different. Using technology providers in mainland China and an opaque China-linked ownership structure, Webull exposes its data to our foremost adversary. Investors should heed this information when choosing who they do business with.”
Khanna added:
“Whether it’s this trading app or other brokerage apps, custodians of Americans’ financial data and savings should strive for transparency with the customers they serve. Webull should be forthright about its connections to the PRC, rather than seemingly seeking to minimize them.”
The report claims the following about Webull operations:
- Data practices expose American investors to PRC legal and surveillance risk.
- Webull misrepresented where key employees worked and how they were supervised.
- Governance is dominated by PRC-linked control.
- regulatory controls were weaker than its assurances suggested.
- Subsidiary accepted PRC government funding conditional on CCP loyalty while its affiliates expanded in China.
- Clearing and custody safeguards are concerning.
The report makes the following recommendations:
- Codify the Securities and Exchange Commission Cross-Border Task Force.
- Enact Inspectability Requirements for Broker-Dealer Operations — a Holding Foreign Companies Accountable Act for Broker-Dealers.
- Create Foreign-Adversary Data Protections for Brokerage Records.
- Regulate Conflicted Clearing and Self-Custody Arrangements.
- Bring Foreign-Controlled Broker-Dealers Within Committee on Foreign Investment in the United States (CFIUS) Jurisdiction.
Yesterday, Webull shared a statement with CI refuting the claims, noting that all data for US customers remains in the US, with operations managed in Florida.
Today, reports indicate that Webull says it supports the Committee’s objectives while again pushing back against the thesis that the Webull platform has been compromised by the CCP.
Webull shares dropped about 20% on the news and are hovering lower today. At least one analyst suspended its buy rating and price target after the report was released.
The Select Committee on the Strategic Competition Between the US and the Chinese Communist Party report entitled Free Trades, Hidden Ties, Exposing Webull’s China Links is viewable below.