Sens. Dave McCormick, R-Pa., and John Fetterman, D-Pa., on Wednesday introduced the PRC Broker-Dealers and Investment Advisers Moratorium Act to protect U.S. markets, consumers, and economic security.
In a news release, the legislation was described as a "response to growing concerns on the unequal regulatory landscape between the United States and the People's Republic of China (PRC) that expose U.S. financial markets and consumer data to risk from Chinese Communist Party (CCP)-linked firms."
"The PRC Broker-Dealers and Investment Advisers Moratorium Act recognizes that CCP-linked firms pose an inherent risk to our financial system," the release said. "This bill gives the financial regulators necessary time to evaluate the impact on U.S. consumer protection and protects the U.S. retail investor."
While China restricts access by U.S. companies to its retail financial market, U.S. markets are open for business to Chinese affiliates, the release said. That gives those Chinese affiliates access to millions of Americans' identifiable and personal information.
Meanwhile, U.S. regulators including the Securities and Exchange Commission have no authority to do any kind of enforcement action or examination in China.