Senators Dave McCormick (R-PA) and John Fetterman (D-PA) have introduced the PRC Broker-Dealers and Investment Advisers Moratorium Act. The legislation aims to address concerns about the risks posed by Chinese Communist Party (CCP)-linked firms in U.S. financial markets, citing an unequal regulatory environment between the United States and China.
Senator McCormick stated, “The PRC Broker-Dealers and Investment Advisers Moratorium Act recognizes that CCP-linked firms pose an inherent risk to our financial system. 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 added, “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. Protecting American investors and our economic security isn’t a partisan fight, and I’m proud to team up with Senator McCormick to get it done.”
According to the senators, while China restricts U.S. firms from its retail financial market, affiliates of Chinese companies can operate in American markets and access sensitive personal data from millions of Americans. U.S. regulatory bodies such as the SEC and FINRA currently lack authority for enforcement actions or examinations within mainland China.
The sponsors of the bill argue that as retail investing evolves rapidly, steps must be taken promptly to prevent further involvement of CCP-linked entities in U.S. markets.
