Press Releases

Washington, D.C. – 6/2/26… Reps. Mike Lawler (NY-17) and Josh Gottheimer (NJ-05) introduced the PRC Broker-Dealers and Investment Advisers Moratorium Act, legislation aimed at protecting U.S. financial markets and investors from entities tied to the Chinese Communist Party (CCP). Currently, U.S. regulators can’t inspect or enforce rules inside China, which means if something goes wrong, Americans’ savings could be at risk.

This legislation puts a temporary stop on financial companies organized under PRC law, controlled by PRC entities, and dependent on PRC-based service providers from operating in U.S. markets until regulators can be sure they don’t pose risks to Americans. By doing so, people’s personal financial information is protected, foreign government‑linked firms are prevented from accessing U.S. investor data, and a loophole is closed in which China blocks American companies, but Chinese firms can freely operate here. 

“The Chinese Communist Party has repeatedly demonstrated its willingness to exploit economic and financial systems to advance its geopolitical ambitions and undermine American interests. U.S. citizens deserve confidence that the institutions handling their investments are free from the influence and coercion of the Chinese Communist Party,” said Congressman Lawler. 

“We can't let CCP-linked firms freely operate in our financial markets, access Americans’ personal data, and put people's hard-earned savings at risk while China shuts our own companies out,” said Congressman Josh Gottheimer (NJ-5). “The Chinese Communist Party has made clear they will use every tool available to undermine American interests, and our financial markets cannot be the next target. Democrats and Republicans agree: we can't keep looking the other way. This bill closes that loophole, protects personal financial information, and makes sure American investors are protected.”

"ASA applauds Reps. Lawler and Gottheimer for their leadership in introducing the PRC Broker-Dealers and Investment Advisers Moratorium Act. This bill ensures Communist China cannot exploit American investors, our capital markets, or our national security interests,” said American Securities Association President and CEO Chris Iacovella

Specifically, the legislation would prohibit SEC registration for broker-dealers and investment advisers that:

• Are organized under the laws of the People’s Republic of China;
• Are controlled by PRC-based entities or nationals residing in China; or
• Depend on PRC-linked affiliates or associated persons for critical infrastructure, software development, network services, maintenance, or customer support.

Full text of the bill can be found HERE.

Congressman Lawler is one of the most bipartisan members of Congress and represents New York's 17th Congressional District, which is just north of New York City and contains all or parts of Rockland, Putnam, Dutchess, and Westchester Counties. He was rated the most effective freshman lawmaker in the 118th Congress, 8th overall, surpassing dozens of committee chairs.

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