House Committee Report Links Webull to National Security Risks
The House Select Committee on China has released a report asserting that the digital investment platform Webull has substantial connections to the Chinese government, which may pose national security risks to the United States financial system. This conclusion was drawn from findings made public on Wednesday.
According to CNBC, the committee's report outlines significant ties between Webull and the Chinese government, which lawmakers view as a national security threat. Following the report's release, Webull's stock experienced an 18 percent decline in morning trading.
Webull, based in St. Petersburg, Florida, claims to serve 28 million users globally and presents itself as an American company. However, the congressional investigation revealed a stark contrast between this public image and the company's actual control structure.
The committee's findings indicate that several aspects of Webull's operations maintain structural connections to China. These include the company's ownership structure, technical workforce, technology infrastructure, cross-border data routing systems, corporate financing arrangements, and compliance frameworks.
Concerns regarding national security have escalated since October 2025, when Webull began directly holding customer cash, as noted in regulatory filings. The committee argues that this development creates a structural exposure involving billions of dollars in American capital.
Particular attention was drawn to Webull's corporate structure, with the committee stating that the company's software development, data pipelines, and core engineering operations rely on infrastructure that is subject to Chinese law. Under these laws, Chinese authorities can compel companies to cooperate with the government, including mandatory data transfers.
Risks Highlighted by House Committee Chair
Representative John Moolenaar (R-MI), chair of the House committee, expressed that Webull's operations based in China put American investors and their data at risk. He emphasized that using technology providers in mainland China and an unclear ownership structure exposes sensitive data to potential threats from the Chinese Communist Party.
In response to the committee's findings, Webull strongly disputed the claims, with a spokesperson expressing disappointment over what they described as inaccuracies and unsupported conclusions. The spokesperson highlighted that Webull's U.S. operations are conducted from its headquarters in Florida and its office in New York City, asserting that U.S. customer data is stored domestically and access to sensitive information is controlled by U.S. protocols.
The congressional investigation, initiated after the committee sought information from Webull in 2024, concluded that the company represents a national security risk due to critical backend systems, personnel, and data flows potentially being exposed to Chinese intelligence laws and demands.
Additionally, the committee noted discrepancies in Webull's representation of its workforce. Initially, the company claimed it had no offices or employees in China, asserting that all personnel were located in the U.S. However, the committee reported that Webull's mainland subsidiary, Hunan Weibu, employs 863 individuals, accounting for 62 percent of the company's global workforce.
Final Brief
Webull, which is publicly traded on the Nasdaq, operates a network of licensed brokerages providing investment services across 18 markets. The platform allows both retail and institutional investors to access global financial markets, facilitating trading in stocks, exchange-traded funds, options, futures, fractional shares, and digital assets.
As a result of the congressional report, Webull shares closed down 19 percent. In light of these developments, national shareholder rights law firm Schall, Brown & Schwartz has announced an investigation on behalf of investors who have incurred losses.
