House panel says Webull's China ties pose national security risk; stock down nearly 30%

The bipartisan House Select Committee on China said in a report released on 7 October that Webull's "ownership architecture, technical workforce, technology infrastructure, cross-border data routing, corporate financing, and compliance frameworks are tied in structural ways to the People's Republic of China," according to findings shared with CNBC. The panel said the ties represent a national security threat to U.S. finance. Webull's stock, which trades on the Nasdaq, was down nearly 30%, according to CNBC.

The committee said national security concerns around the company have "escalated" since October 2025, when Webull began carrying customer cash directly, citing a regulatory filing. The panel alleged this creates a "structural exposure of billions of dollars in American capital." The committee said the firm's "software development, data pipelines, and core engineering operations" depend on infrastructure subject to Beijing's laws, which the panel said can compel firms to cooperate with the Chinese government, including on data transfers.

Webull disputed the report. A spokesperson said by email, "It is deeply disappointing that the Select Committee published a report containing significant inaccuracies and unsupported conclusions without ever seeking clarification from Webull." The spokesperson said Webull's U.S. business is conducted from its global headquarters in St. Petersburg, Florida and its New York City office, that U.S. customer data is stored in the U.S., and that access to sensitive customer data is controlled by the U.S.

Rep. John Moolenaar, R-Mich., who chairs the committee that issued the report, told CNBC in a statement that Webull's "China-based operations put American investors and their data at risk." Moolenaar said Webull uses technology providers in mainland China and an "opaque China-linked ownership structure." He added that "investors should heed this information when choosing who they do business with."

Webull, founded in 2016 by former Alibaba and Xiaomi manager Wang Anquan, says it operates a "global network of licensed brokerages" offering investment services in 18 markets and counts 28 million global users. Users can trade global stocks, ETFs, options, futures, fractional shares and digital assets. Its competitors include Robinhood, Charles Schwab and E-Trade. The committee said it had requested information from the company in 2024.