WASHINGTON, D.C. — In a rare show of bipartisan cooperation, U.S. Senators John Fetterman (D-PA) and Dave McCormick (R-PA) have introduced legislation aimed at protecting U.S. investors and national economic security by temporarily halting the operations of Chinese Communist Party (CCP)-linked financial firms in American markets.
The bill, known as the PRC Broker-Dealers and Investment Advisers Moratorium Act (S. 2552), seeks to impose a moratorium on broker-dealers and investment advisers connected to the People’s Republic of China until U.S. regulators can complete a thorough review of the risks these entities may pose.
Fetterman, highlighting the national security implications, said the measure is about safeguarding American consumers from potential surveillance and manipulation. “Pennsylvanians don’t want their hard‑earned savings snooped on or manipulated by the Chinese Communist Party,” he stated. “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.”
McCormick echoed those concerns, emphasizing the asymmetry in regulatory access. “The PRC Broker-Dealers and Investment Advisers Moratorium Act recognizes that CCP-linked firms pose an inherent risk to our financial system,” he said. “This bill gives the financial regulators necessary time to evaluate the impact on U.S. consumer protection and protects the U.S. retail investor.”
Currently, U.S. regulators such as the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) are limited in their ability to conduct inspections or enforcement actions within mainland China. Meanwhile, Chinese firms face no such barriers when accessing the U.S. retail financial market, granting them exposure to sensitive personal and financial data of American investors.
Lawmakers say the legislation is urgently needed as retail investing evolves and market technologies advance, potentially heightening the risk of foreign interference and exploitation.
The bill reflects growing bipartisan concern over the expanding presence of CCP-affiliated firms in critical sectors of the U.S. economy, and is part of a broader national push to recalibrate U.S.-China financial relations in light of strategic and regulatory imbalances.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.