A bipartisan congressional committee has concluded that trading platform Webull is structurally linked to the Chinese government, posing a national security threat to U.S. financial systems. The findings, shared exclusively with CNBC by the House Select Committee on China, triggered a sharp decline in the company’s stock price.
According to the report released Wednesday, there is a “profound gap” between Webull’s public branding as an American firm and the reality of its operations. The committee determined that the St. Petersburg, Florida-based company’s ownership structure, technical workforce, technology infrastructure, cross-border data routing, corporate financing, and compliance frameworks are all deeply connected to the People’s Republic of China.
Panel members asserted that national security concerns have escalated since October 2025, when Webull began holding customer cash directly, citing a regulatory filing. The committee argued this practice created a “structural exposure of billions of dollars in American capital,” noting that the firm’s software development and core engineering operations rely on infrastructure subject to Beijing’s laws, which can compel data transfers.
Webull strongly contested the report. A company spokesperson stated that the document contained “significant inaccuracies and unsupported conclusions” and criticized the committee for reaching these findings without seeking clarification from the firm. The company emphasized that its U.S. business operates from headquarters in Florida and an office in New York City, with U.S. customer data stored domestically and access controlled by U.S. authorities.
Following the release of the report, shares of Webull Corp plummeted nearly 30% in premarket trading.
Rep. John Moolenaar, R-Michigan, addressed the findings in a statement to CNBC.
Wow, I didn’t realize Webull had such deep ties to infrastructure subject to Beijing’s laws. Time to review my portfolio.
Interesting that the committee waited until 2025 when they started holding customer cash to escalate concerns. Was that the real trigger?
This highlights the tension between using Chinese supply chains and American security concerns. It’s not just about one app anymore.
The company’s rebuttal sounds reasonable. National security claims in fintech are slippery; let’s wait for concrete evidence of actual data leaks.
I’ve used Webull for years and never worried about data routing. I’m surprised a bipartisan report could shake the market this much.
Thirty percent drop on premarket news? That’s brutal. Did they have time to diversify before this hit the wire?