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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9028 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 9028
To amend the securities laws to prohibit brokers, dealers, and
investment advisers with certain connections to the People's Republic
of China from registering with the Securities and Exchange Commission,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 26, 2026
Mr. Lawler (for himself and Mr. Gottheimer) introduced the following
bill; which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the securities laws to prohibit brokers, dealers, and
investment advisers with certain connections to the People's Republic
of China from registering with the Securities and Exchange Commission,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``PRC Broker-Dealers and Investment
Advisers Moratorium Act''.
SEC. 2. PROHIBITIONS.
(a) Broker or Dealer Registration.--
(1) In general.--Section 15 of the Securities Exchange Act
of 1934 (15 U.S.C. 78o) is amended by adding at the end the
following:
``(p) Prohibition on Registration as a Broker or Dealer Related to
Chinese Ownership.--
``(1) Control defined.--In this subsection, the term
`control' means beneficially owning, either directly or through
1 or more companies, more than 15 percent of the voting
securities of an entity.
``(2) Prohibition.--A broker or dealer shall be prohibited
from being registered as a broker or dealer under subsection
(b) if--
``(A) the broker or dealer is an entity organized
under the laws of the People's Republic of China;
``(B) the broker or dealer is controlled by an
entity organized under the laws of the People's
Republic of China;
``(C) the broker or dealer is controlled by a
national of the People's Republic of China who resides
in the People's Republic of China; or
``(D) there is an associated person of the broker
or dealer organized under the laws of the People's
Republic of China that provides the broker or dealer
with services, related to--
``(i) platform infrastructure;
``(ii) network services; or
``(iii) software or product development,
maintenance, or support.''.
(2) Termination.--On the date that is 5 years after the
date of enactment of this Act, section 15 of the Securities
Exchange Act of 1934 (15 U.S.C. 78o) is amended by striking
subsection (p), as added by paragraph (1) of this subsection.
(b) Investment Adviser Registration.--
(1) In general.--Section 203 of the Investment Advisers Act
of 1940 (15 U.S.C. 80b-3) is amended by adding at the end the
following:
``(o) Prohibition on Registration as an Investment Adviser Related
to Chinese Ownership.--
``(1) Control defined.--In this subsection, the term
`control' means beneficially owning, either directly or through
1 or more companies, more than 15 percent of the voting
securities of an entity.
``(2) Prohibition.--A person may not be registered as an
investment adviser if--
``(A) the person is an entity organized under the
laws of the People's Republic of China;
``(B) the person is controlled by an entity
organized under the laws of the People's Republic of
China;
``(C) the person is controlled by a national of the
People's Republic of China who resides in the People's
Republic of China; or
``(D) an affiliate of the person is organized under
the laws of the People's Republic of China that
provides the person with services, including--
``(i) software development or support;
``(ii) product development; or
``(iii) customer service.''.
(2) Termination.--On the date that is 5 years after the
date of enactment of this Act, section 203 of the Investment
Advisers Act of 1940 (15 U.S.C. 80b-3) is amended by striking
subsection (o), as added by paragraph (1) of this subsection.
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