WASHINGTON, D.C. — U.S. Senators Dave McCormick (R-PA) and John Fetterman (D-PA) have jointly introduced legislation aimed at pausing the expansion of Chinese Communist Party (CCP)-linked financial firms into U.S. markets. The proposed PRC Broker-Dealers and Investment Advisers Moratorium Act seeks to block new registrations of such firms until American regulators can fully assess the risks they pose to national security and consumer protection.
The bill targets a growing imbalance in market access and regulatory enforcement between the United States and the People’s Republic of China. While U.S. financial firms face heavy restrictions in China, Chinese-affiliated broker-dealers and investment advisers have gained entry into American markets—often without being subject to equivalent regulatory oversight.
These foreign affiliates may collect personally identifiable and sensitive financial information from millions of U.S. investors, but regulators such as the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) currently lack the authority to inspect or take enforcement action against entities based in mainland China.
“The PRC Broker-Dealers and Investment Advisers Moratorium Act recognizes that CCP-linked firms pose an inherent risk to our financial system,” said Senator McCormick. “This bill gives the financial regulators necessary time to evaluate the impact on U.S. consumer protection and protects the U.S. retail investor.”
Senator Fetterman echoed the concern over data exposure and national security: “Pennsylvanians don’t want their hard-earned savings snooped on or toyed with by the Chinese Communist Party. This bipartisan bill slams the brakes on CCP-linked broker-dealers and investment advisers until our regulators can give them a full, no-nonsense inspection.”
The legislation is a rare example of cross-party alignment on national security in financial markets. It reflects a growing push in Congress to rebalance trade and financial relationships with China, particularly in light of evolving digital finance platforms and retail investing trends.
If enacted, the bill would prevent new registrations by broker-dealers and investment advisers affiliated with the CCP, giving U.S. regulatory agencies space to evaluate the security, transparency, and systemic implications of such firms operating within American financial infrastructure.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.