Reps. Lawler and Gottheimer Introduce Bill to Block China-Linked Investment Firms from U.S. Markets
This bill is currently in the early stages of the legislative process and is being reviewed by the House Committee on Financial Services. It was recently introduced and has not yet been scheduled for a vote. The bill is considered active as it waits for further action from the committee.
The bill has support from both Republicans and Democrats, which is a good sign. However, it is still in the early stages and must pass through committees before it can be voted on.
Small financial advisory firms and broker-dealers that have any Chinese ownership stake above 15% or rely on China-based affiliates for software, platform infrastructure, or customer service would be forced to restructure their operations or lose their SEC registration. This could mean significant costs for firms that need to find alternative technology providers or restructure their ownership.
“the term `control' means beneficially owning, either directly or through 1 or more companies, more than 15 percent of the voting securities of an entity.”
Referred to the House Committee on Financial Services.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
No votes have been recorded for this legislation yet.
U.S. Sens. John Fetterman and Dave McCormick introduced the PRC Broker-Dealers and Investment Advisers Moratorium Act to protect U.S. markets and consumer data from Chinese financial firms. The bill prohibits firms with PRC connections from registering as investment advisers with the SEC.
The American Securities Association (ASA) praised the introduction of the PRC Broker-Dealers and Investment Advisers Moratorium Act by Reps. Lawler and Gottheimer. The bill seeks to close loopholes allowing Chinese firms to operate in U.S. markets while American firms are restricted in China.
Document Type
Congressional Bill
Official Title
PRC Broker-Dealers and Investment Advisers Moratorium Act
Analysis generated by AI. Always verify with official sources.