Senators from both sides of the aisle introduced a bill that might finally slam the door on Chinese financial infiltration in our markets.

Story Snapshot

• Bipartisan bill targets Chinese broker-dealers and investment advisers in U.S. markets
• McCormick-Fetterman Act responds to regulatory asymmetry and data privacy concerns
• Senators cite immediate threat to U.S. consumer data and economic security
• Moratorium could reshape U.S.-China financial relations and set new precedent

Senate Targets Chinese Financial Firms After Years of Lax Oversight

On July 30, 2025, Pennsylvania Senators Dave McCormick and John Fetterman introduced the PRC Broker-Dealers and Investment Advisers Moratorium Act—a rare bipartisan strike against Chinese financial interests that have been running circles around U.S. regulators for years. The bill calls for a complete halt on new broker-dealer and investment adviser registrations linked to the People’s Republic of China. The senators argue that this move is overdue, given the long-standing lopsided arrangement: American firms are shackled by Chinese red tape, while Chinese companies waltz into our markets, scoop up American investor data, and operate with near impunity.

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— Protecting America Initiative (@ProtectUSInit) July 31, 2025

The legislation comes as the latest response to mounting evidence that U.S. authorities lack any meaningful way to oversee or discipline Chinese firms operating stateside. The Securities and Exchange Commission cannot enforce its rules across the Pacific and has been repeatedly stonewalled when attempting to examine these entities. The risks—ranging from data breaches to market manipulation—are not theoretical. They’re real, and they’re growing, as U.S. intelligence and congressional watchdogs have been warning for a decade.

Bipartisan Action in an Era of Extreme Partisanship

Senator McCormick made clear that America’s economic backbone is at stake, highlighting the absurdity of letting Chinese firms enjoy free rein while U.S. companies get stonewalled in Beijing. Fetterman, not often aligned with conservative priorities, joined in, citing the need to protect consumer data and restore integrity to U.S. markets. The bill’s supporters emphasize that this is a temporary moratorium, meant to give regulators time to study the risks and develop real safeguards. But make no mistake: the intent is to draw a red line and finally put American interests first.

Economic Security and Data Privacy at the Forefront

For years, U.S. lawmakers and financial experts have warned about the gaping holes in our financial regulatory system when it comes to foreign—especially Chinese—entities. The U.S. government has repeatedly failed to gain audit access to Chinese firms, while these same firms have tapped into American capital and harvested consumer data with little oversight. The McCormick-Fetterman Act is designed to stop the bleeding. It seeks to freeze new Chinese registrations and scrutinize those already operating here.

Immediate impacts could include a freeze on new PRC-linked broker-dealer and investment adviser registrations, closer scrutiny of those already doing business here, and a new era of heightened U.S.-China economic tension. In the long run, the bill could force a fundamental restructuring of financial market access between the two nations. Proponents argue that this is a necessary step to protect American investors and ensure that U.S. regulators are not rendered toothless by foreign governments who refuse to play by the same rules.