Protecting U.S. Investors From Chinese Military Companies Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5643 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 5643

   To direct the Securities and Exchange Commission to indefinitely 
 suspend the trading of securities of certain companies, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 30, 2026

   Mr. Scott of Florida (for himself and Mr. Cramer) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
   To direct the Securities and Exchange Commission to indefinitely 
 suspend the trading of securities of certain companies, 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 ``Protecting U.S. Investors From 
Chinese Military Companies Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Appropriate committees of congress.--The term 
        ``appropriate committees of Congress'' means the Committee on 
        Banking, Housing, and Urban Affairs of the Senate and the 
        Committee on Financial Services of the House of 
        Representatives.
            (2) Commission.--The term ``Commission'' means the 
        Securities and Exchange Commission.

SEC. 3. SUSPENSION.

    (a) In General.--Except as provided in subsection (b), not later 
than 10 days after the date on which the Secretary of Defense revises 
the list pursuant to section 1260H of the William M. (Mac) Thornberry 
National Defense Authorization Act for Fiscal Year 2021 (10 U.S.C. 113 
note; Public Law 116-283), the Commission shall indefinitely suspend 
the trading of securities of any company on the list if the company 
remains on the list for 2 annual revisions.
    (b) Non-SDN Chinese Military-Industrial Complex Companies List.--
Not later than 10 days after the date on which the Office of Foreign 
Assets Control of the Department of the Treasury adds a Chinese 
military company described in subsection (a) to the Non-SDN Chinese 
Military-Industrial Complex Companies List, the Commission shall notify 
the appropriate committees of Congress that the Commission did not 
suspend the trading of securities of the company.
    (c) Regulations.--
            (1) In general.--The Commission shall promulgate 
        regulations, and issue such orders, as are strictly necessary 
        to carry out the requirements of this section.
            (2) Contents.--Consistent with subsections (a) and (b), the 
        regulations and orders promulgated and issued under paragraph 
        (1) may address only--
                    (A) the identification of securities subject to a 
                trading prohibition;
                    (B) the timing, administration, and enforcement of 
                such trading prohibition;
                    (C) the verification and application of the 
                exception; and
                    (D) the notices required to the appropriate 
                committees of Congress.
            (3) Limitations.--Chapters 5 and 7 of title 5, United 
        States Code, shall not apply with respect to any regulation 
        promulgated under this subsection.
            (4) Rule of construction.--Nothing in this subsection may 
        be construed to authorize the Commission to--
                    (A) establish criteria for inclusion on, or removal 
                from, the lists described in subsections (a) and (b);
                    (B) impose a requirement, restriction, penalty, or 
                obligation not expressly authorized by this section;
                    (C) require a securities trading prohibition 
                outside of what is authorized under this section; or
                    (D) regulate any person or transaction other than 
                as necessary to implement a trading prohibition or 
                exception expressly required under this section.
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