If an American consumer does business with a financial firm based in China, how much data could be exposed to prying eyes?
That’s something both Pennsylvania’s U.S. senators want to know.
The PRC Broker-Dealers and Investment Advisers Moratorium Act recently was introduced by Sens. Dave McCormick and John Fetterman. Both expressed concerns about what they consider an unequal regulatory landscape between the U.S. and China, which could expose American financial markets and consumer data to firms backed by the Chinese Communist Party.
“The PRC Broker-Dealers and Investment Advisers Moratorium Act recognizes that CCP-linked firms pose an inherent risk to our financial system,” McCormick, a Republican, said. “This bill gives the financial regulators necessary time to evaluate the impact on U.S. consumer protection and protects the U.S. retail investor.”
Fetterman, a Democrat, said protecting investors and economic security aren’t partisan issues.
“Pennsylvanians don’t want their hard‑earned savings snooped on or toyed with by the Chinese Communist Party,” Fetterman said. “This bipartisan bill slams the brakes on CCP‑linked broker‑dealers and investment advisers until our regulators can give them a full, no‑nonsense inspection.”
With increasing interconnection of the global economy, keeping track of data has become more complicated. The Center for Internet Security said that data control “is central to the Chinese Community Party’s quest for digital and technological dominance on the world stage.” The CIS said data on popular apps such as TikTok and Temu have been important resources for the CCP.
Congress passed a law in 2024 to prevent data brokers from selling personal data to entities controlled by “designated foreign adversaries,” including China. In April, the Justice Department implemented a rule under an executive order from then-President Joe Biden that restricts commercial transactions involving bulk personal data with counties such as China.
The senators said that while China restricts access of U.S. firms to its retail financial market, U.S. markets are open for business to Chinese affiliates. The affiliates have access to millions of Americans’ personally identifiable information and sensitive data. Furthermore, U.S. regulators, including the Securities and Exchange Commission and Financial Industry Regulatory Authority, do not have the authority to conduct enforcement actions or examinations in mainland China.
“With the landscape of retail investing and market innovations quickly changing, the U.S. must act quickly to guard against the further intrusion of CCP-linked entities into our markets,” they said.
The bill, S.2552, has been referred to the Committee on Banking, Housing and Urban Affairs.
