PRC Broker-Dealers and Investment Advisers Moratorium Act
Sponsored By: Representative Lawler, Michael [R-NY-17]
Introduced
Summary
A five-year moratorium on SEC registration for brokers, dealers, and investment advisers with specified ties to the People's Republic of China. It would stop new registrations when a firm is organized in, controlled by, or closely tied to PRC nationals or PRC-organized service providers.
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- Broker-dealers would be ineligible to register under Section 15(b) if they are organized under PRC law, controlled by a PRC-organized entity, controlled by a PRC national who lives in the PRC, or associated with PRC-organized providers of platform infrastructure, network services, or software and product development support.
- Investment advisers would be ineligible to register under Section 203 for the same kinds of PRC ties, including affiliates that provide software development or support, product development, or customer service.
- The bill sets a uniform control test as beneficial ownership of more than 15% of voting securities, directly or through other companies, and the registration ban would automatically end five years after enactment when the new provisions are removed.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Five-year ban on China-linked brokers and advisers
If enacted, this bill would bar new SEC registration for brokers, dealers, and investment advisers with specified ties to the People’s Republic of China. The ban would apply if the firm is organized under PRC law; is controlled by a PRC-organized entity; is controlled by a PRC national who lives in the PRC; or if an associated person or affiliate organized under PRC law provides platform infrastructure, network services, software or product development, maintenance, support, or customer service. The bill defines “control” as beneficially owning, directly or through one or more companies, more than 15 percent of an entity’s voting securities. The restriction would take effect at enactment and would automatically end five years after enactment.
Sponsors & CoSponsors
Sponsor
Lawler, Michael [R-NY-17]
NY • R
Cosponsors
Rep. Gottheimer, Josh [D-NJ-5]
NJ • D
Sponsored 5/26/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov