The House Select Committee on China's report, shared exclusively with CNBC, identifies what it calls "a profound gap" between Webull's public marketing as an American company and the actual control of its St. Petersburg, Florida-based operations. The committee found that Webull's ownership architecture, technical workforce, technology infrastructure, cross-border data routing, corporate financing, and compliance frameworks are "tied in structural ways to the People's Republic of China."
The panel asserted that national security concerns around the company have escalated since October 2025, when Webull began carrying customer cash directly. The committee alleges this creates a "structural exposure of billions of dollars in American capital." The report further states that the company's corporate structure means its software development, data pipelines, and core engineering operations depend on infrastructure subject directly to Beijing's laws, which can compel firms to cooperate with the government in data transfers.
Webull disputed the report's findings, with a spokesperson stating via email: "It is deeply disappointing that the Select Committee published a report containing significant inaccuracies and unsupported conclusions without ever seeking clarification from Webull." The spokesperson added that Webull's U.S. business is conducted from its global headquarters in St. Petersburg, Florida, and its New York City office, while U.S. customer data is stored in the U.S. and access to sensitive customer data is controlled by the U.S. The company said it remains "prepared to address any questions directly and with the same transparency we bring to the SEC, FINRA, and regulators worldwide."
Rep. John Moolenaar, R-Mich., who chairs the committee, told CNBC that Webull's "China-based operations put American investors and their data at risk," adding that the company "exposes its data to our foremost adversary" through technology providers in mainland China and an opaque ownership structure. Webull's stock fell nearly 30% in premarket trading following the report's release.