✎ Contributed by Ty Griffin
Webull shares fell sharply after a bipartisan congressional panel said the online brokerage’s ownership, technology infrastructure and data operations maintain structural connections to China. The House Select Committee on China argued that those ties could expose U.S. customer information and billions of dollars in client assets to Chinese laws requiring companies to cooperate with government authorities.
Webull disputed the report, calling its conclusions unsupported and saying its U.S. operations are managed from offices in Florida and New York. The company also said American customer data is stored domestically and access to sensitive information is controlled within the U.S. Webull serves 28 million users globally and reported holding $24.6 billion in customer assets.
Market Reaction
- Webull Corp. (NASDAQ: BULL): $5.90, down $1.39 (19.02%)
- Robinhood Markets Inc. (NASDAQ: HOOD): $109.04, down $2.96 (2.65%)
- Charles Schwab Corp. (NYSE: SCHW): $95.60, down $1.19 (1.23%)
- Interactive Brokers Group Inc. (NASDAQ: IBKR): $87.19, down $3.39 (3.74%)
- Morgan Stanley (NYSE: MS): $188.55, down $2.47 (1.29%)
Investor Sentiment
Webull’s steep decline reflects concern that the congressional findings could lead to heightened regulatory scrutiny, reputational damage or customer departures. Investors will be watching for potential action from lawmakers and financial regulators, along with additional disclosures about the company’s ownership, workforce and technology systems.
The broader decline among brokerage stocks suggests caution across the online trading industry, where customer trust, cybersecurity and regulatory compliance are central to maintaining assets and account growth. Competitors such as Robinhood, Charles Schwab, Interactive Brokers and Morgan Stanley’s E-Trade could benefit if customers move away from Webull, although increased scrutiny of data protection practices could raise compliance costs across the sector.
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