Senators Dave McCormick (R-PA) and John Fetterman (D-PA) have introduced the PRC Broker-Dealers and Investment Advisers Moratorium Act, a legislative proposal aimed at protecting U.S. markets, consumers, and national economic security. The bill is a response to concerns about an uneven regulatory environment between the United States and the People’s Republic of China (PRC), which lawmakers say could expose American financial markets and consumer data to risks from firms linked to the Chinese Communist Party (CCP).
“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 emphasized bipartisan support for stronger oversight: “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,” he said. “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.”
Currently, while China limits access for U.S. firms in its retail financial market, Chinese affiliates are able to operate in U.S. markets where they can access personal information belonging to millions of Americans. In addition, American regulators such as the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) do not have authority to carry out enforcement actions or examinations within mainland China.
Lawmakers argue that as retail investing evolves rapidly in the United States, action is needed to prevent further entry of CCP-linked entities into domestic markets.
