A bipartisan congressional committee has found that digital investment platform Webull is 'tied in structural ways' to the Chinese government, raising national security concerns for U.S. finance according to a report shared exclusively with CNBC [1]. The House Select Committee on China stated that Webull, which has 28 million global users, presents a 'profound gap' between its public image as an American company and its actual control structure [1]. The committee's report highlights that Webull's ownership, technical workforce, technology infrastructure, cross-border data routing, corporate financing, and compliance frameworks are all linked to the People's Republic of China [1].
The panel noted that national security concerns have 'escalated' since October 2025, when Webull began carrying customer cash directly, creating what the committee describes as a 'structural exposure of billions of dollars in American capital' [1]. The report further alleges that Webull's software development, data pipelines, and core engineering operations rely on infrastructure subject to Chinese law, which can compel companies to cooperate with the government, including in data transfers [1].
Webull disputed the committee's findings, stating through a spokesperson that the report contains 'significant inaccuracies and unsupported conclusions' and that the committee did not seek clarification from the company [1]. The spokesperson emphasized that Webull's U.S. business is conducted from its headquarters in St. Petersburg, Florida, and New York City, and that U.S. customer data is stored domestically with access controlled by the U.S. [1]. Webull also stated its willingness to address any questions transparently with regulators [1].
Following the release of the report, Webull's stock dropped 18% in morning trading [1]. Rep. John Moolenaar, chair of the House committee, warned that Webull's 'China-based operations put American investors and their data at risk,' and advised investors to consider this information when choosing financial service providers [1].
CONCLUSION
The congressional report has triggered significant market reaction, with Webull's stock falling sharply amid concerns over its ties to China and potential risks to American investors. Webull has denied the allegations and emphasized its U.S.-based operations and data controls. The situation highlights ongoing scrutiny of foreign influence in U.S. financial technology firms.