Us Congress Senate Bill SB2552

Us Congress 2025-2026 Regular Session

• Introduced: 7/30/25
• Refer: 7/30/25

Caption

PRC Broker-Dealers and Investment Advisers Moratorium Act

Impact

If enacted, this bill would significantly affect the operations of financial service providers that have any affiliation or control by Chinese entities or nationals. The provisions of the bill restrict not just direct control but also include affiliates that provide essential services to these brokers or dealers. The implications are that many firms that have any degree of connection to the PRC may be forced to alter their business structures, which could impact market dynamics and competition within the U.S. financial sector.

Summary

SB2552, known as the 'PRC Broker-Dealers and Investment Advisers Moratorium Act', aims to amend existing securities laws in the United States to prohibit brokers and dealers that have connections to the People's Republic of China from being members of a national securities association. It also seeks to prevent investment advisers with similar connections from registering with the Securities and Exchange Commission (SEC). The legislation addresses rising concerns about national security related to financial transactions and investments linked to entities and individuals in China.

Contention

Notable points of contention surrounding SB2552 include the potential ramifications for U.S.-China economic relations, as well as concerns about the impacts on American investment firms that may unknowingly have ties to Chinese affiliates. Critics argue that this bill could further escalate tensions with China and may lead to retaliatory actions. Additionally, some stakeholders express worries that stringent measures could limit the competitive edge of U.S. firms abroad, particularly in a globalized market where partnerships are commonplace.

Enforcement

The bill grants the SEC examination authority over investment advisers to ensure compliance with these new prohibitions. Such powers include the right to review the books and operations of firms operating outside U.S. jurisdiction, which has raised discussions regarding the practicality and implications of enforcing such oversight, especially considering international investment practices.