A bipartisan US House Select Committee on China investigation has raised serious national security concerns about the China-linked ownership, technology operations, and data practices of online brokerage Webull, warning that American investors' financial information could be exposed to Chinese government surveillance. The committee released its findings on Wednesday, 8 October 2025, alleging the Florida-headquartered trading platform had not been transparent about its connections to China.

Key Allegations in the Report

The investigation, titled 'Free Trades, Hidden Ties: Exposing Webull's China Links', was led by Republican Chairman John Moolenaar and Democratic Ranking Member Ro Khanna. The committee identified six areas of concern: alleged risks to investor data, misleading disclosures about employees and supervision, China-linked corporate control, weaknesses in regulatory compliance, Chinese government financial support, and concerns involving clearing and custody arrangements.

According to the investigation, Webull's mainland Chinese subsidiary, Hunan Weibu, employed 863 people, accounting for approximately 62 per cent of the company's global workforce. The committee alleged that the company had misrepresented the location of important employees and the nature of their supervision. It also alleged that Hunan Weibu had received government subsidies tied to political requirements.

What the Lawmakers Said

'Webull's China-based operations put American investors and their data at risk,' Moolenaar said. He warned that Chinese national security laws could compel companies and individuals to cooperate with government demands for information. 'Using technology providers in mainland China and an opaque China-linked ownership structure, Webull exposes its data to our foremost adversary,' he added.

Khanna stressed the need for greater transparency from financial institutions holding Americans' savings. '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,' he said. 'Webull should be forthright about its connections to the PRC, rather than seemingly seeking to minimise them.'

Webull's Response

Webull rejected the findings, saying the congressional report contained significant inaccuracies and unsupported conclusions. A company spokesperson said its US operations were conducted from its headquarters in St. Petersburg, Florida, and an office in New York City. The company maintained that US customer data was stored in the United States and that access to sensitive information was controlled domestically.

Market Reaction and Regulatory Implications

Webull shares fell sharply on Wednesday following publication of the report, reflecting investor concerns about possible regulatory consequences. Notably, the report did not itself impose sanctions, trading restrictions, or penalties on the company.

The committee recommended five policy changes, including stronger oversight of foreign-controlled brokerages, new protections for Americans' financial data, legislation establishing inspection requirements for broker-dealers with overseas operations, and an expansion of the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS). Lawmakers also proposed tighter regulation of clearing and custody arrangements where conflicts of interest could arise.

This comes amid a broader pattern of US congressional scrutiny of Chinese-linked technology and financial platforms — a trend that has previously ensnared TikTok and other firms. The report's policy recommendations signal that legislative action targeting foreign-controlled brokerages could follow in the months ahead.