A bipartisan Senate bill now seeks to bar Chinese-linked financial firms from operating on American soil, raising the stakes in the fight to protect U.S. economic security and consumer data.
Story Snapshot
- Bipartisan Senate bill would ban broker-dealers and investment advisers linked to China from U.S. financial markets
- Sens. Dave McCormick (R-PA) and John Fetterman (D-PA) cite threats to economic security and consumer data integrity
- Legislation responds to longstanding concerns over China’s regulatory barriers and data access risks
- Bill’s introduction signals broad political consensus on challenging Chinese Communist Party-linked firms
Senators Move to Block PRC-Linked Firms from U.S. Markets
On July 30, 2025, Senators Dave McCormick and John Fetterman introduced the PRC Broker-Dealers and Investment Advisers Moratorium Act, a bipartisan effort to halt Chinese government-linked financial firms from accessing U.S. markets. The bill targets broker-dealers and investment advisers with connections to the People’s Republic of China, reflecting deepening concerns that the Chinese Communist Party’s influence in American finance could jeopardize market integrity and the privacy of U.S. consumers. Public statements from both senators emphasize the urgency of closing regulatory gaps that have allowed PRC-linked entities to operate freely in the U.S. while American firms face heavy restrictions in China.
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— Protecting America Initiative (@ProtectUSInit) July 31, 2025
The legislation arrives as U.S.-China tensions escalate over technology, trade, and security, with lawmakers warning that unchecked access for CCP-linked firms poses an inherent risk to America’s financial infrastructure. According to Senator McCormick, “The PRC Broker-Dealers and Investment Advisers Moratorium Act recognizes that CCP-linked firms pose an inherent risk to our financial system.” Senator Fetterman, a Democrat, echoed these concerns, underscoring the bill’s bipartisan support and broad constituent backing for decisive action to safeguard the U.S. economy and privacy.
McCormick-Fetterman Bill Targets China Firms to Protect US Economic Security
Source: Newsmax https://t.co/I4CoyM7JgM— Fred S Loquasto (@FLoquasto) July 31, 2025
Bipartisan Consensus Reflects Rising Scrutiny of Chinese Financial Access
The McCormick-Fetterman bill stands out for directly confronting the regulatory asymmetry between the United States and China. While U.S. markets have remained open to foreign firms—including those controlled or influenced by the Chinese government—American companies face stiff barriers in China. The bill’s sponsors argue that this imbalance not only hurts U.S. businesses but exposes Americans to data privacy risks and potential exploitation by foreign adversaries. The U.S. Securities and Exchange Commission would be tasked with enforcing the proposed restrictions, marking a significant expansion of regulatory authority over foreign market participants.
This legislative push builds upon earlier actions, such as the Holding Foreign Companies Accountable Act, which scrutinized Chinese firms listed on American exchanges. Previous measures resulted in some Chinese companies being delisted for failing to adhere to U.S. audit standards.
Sources:
Dauphin News: Senators introduce bill targeting CCP-linked financial firms over security concerns
99.7 WPRO: McCormick-Fetterman Bill Targets China Firms to Protect US Economic Security
