Overview
- A bipartisan House Select Committee released a report on Wednesday, Oct. 7, 2026, concluding Webull's ownership, technology operations and data flows are tied in structural ways to the People's Republic of China and that those ties present a potential national security threat to U.S. finance.
- The committee cited Webull's multi-jurisdictional footprint — a Cayman holding company, U.S. entities, a Singapore tech arm and a mainland China subsidiary — and pointed to engineering work and data pipelines that it says remain dependent on systems subject to Chinese law.
- Committee staff highlighted company filings showing $24.6 billion in customer assets at the end of 2025 and a mainland subsidiary, Hunan Weibu, that disclosed 863 employees representing about 62% of Webull's global workforce.
- Lawmakers said the risk increased after Webull began carrying U.S. customer cash directly in October 2025, and the report triggered an immediate market reaction with Webull shares falling roughly 18–20% intraday; no U.S. enforcement actions have been announced yet.
- Webull strongly disputed the report, saying U.S. customer data is stored domestically and access is controlled by U.S. personnel, and the findings are likely to prompt further reviews by the SEC, FINRA or national-security agencies that could demand detailed audits of operations and data controls.