Webull Shares Drop 18% After Congressional Report on China Security

Webull (BULL) shares fell 18% in morning trading after the House Select Committee on China released a bipartisan report alleging the brokerage maintains structural ties to the Chinese government. The findings raise questions about data security and the company's operational transparency, representing a change in regulatory scrutiny for the retail trading platform.

"Using technology providers in mainland China and an opaque China-linked ownership structure, Webull exposes its data to our foremost adversary," said Rep. John Moolenaar, R-Mich., in a statement regarding the committee's findings.

Allegations of Structural Ties

The House Select Committee report details areas where it claims Webull's operations are linked to the People’s Republic of China. The committee points to the company's ownership architecture, technology infrastructure, cross-border data routing, and corporate financing as areas of concern.

A central focus of the report is the company's workforce distribution. While the firm has previously suggested a U.S.-centric operational model, the committee alleges that Webull’s mainland subsidiary, Hunan Weibu, employs 863 people. This figure represents 62% of the company's total global workforce, according to the report.

Webull's Response to Findings

Webull has formally disputed the committee's claims, characterizing the report as flawed and lacking in due process. The company maintains that its operations are compliant with international standards and criticized the committee for failing to engage with the brokerage before publishing its conclusions.

"It is deeply disappointing that the Select Committee published a report containing significant inaccuracies and unsupported conclusions without ever seeking clarification from Webull," the company said in a statement.

Market and Regulatory Context

The scrutiny occurs as U.S. regulators focus on the data security implications of foreign-linked financial technology firms. As of October 12, 2026, Webull Corp (BULL) is trading at $6.15.

The committee’s allegations regarding cross-border data routing highlight technical mechanisms often scrutinized in national security reviews. These mechanisms involve the transfer of sensitive user information across jurisdictions, which can complicate the enforcement of domestic privacy laws and data protection mandates. The report suggests that the current integration between Webull's U.S. services and its Chinese technical infrastructure creates a vulnerability that could be exploited by foreign actors to access the personal and financial information of American investors.