H.R. 9028

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9028 Introduced in House (IH)]

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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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