Today, Congressman Blaine Luetkemeyer (MO-03) sent a letter to the chairman of the Securities and Exchange Commission (SEC), Gary Gensler, and the president and CEO of the Financial Industry Regulatory Authority (FINRA), Robert Cook, regarding both agencies’ insufficient scrutiny of Chinese crypto companies.

The letter reiterates concerns that the SEC and FINRA continue to allow registered broker-dealers with ownership ties to the Chinese Communist Party to operate in the United States. The CCP will utilize a variety of avenues to impact our markets and citizens, but guidance from the SEC and FINRA is too narrowly focused on China-based companies. It does not account for U.S. companies with direct or indirect ties to the CCP.

Specifically, Rep. Luetkemeyer notes licensed broker-dealers Webull Financial, Moomoo, Inc., and Prometheum Inc. as being owned at least in part by Chinese entities and having received approval from the SEC and FINRA.

“There is no doubt that the investing public needs full and clear disclosures regarding U.S. companies’ direct or indirect affiliations with the CCP. However, because the Sample Letter and associated guidance appears to be narrowly targeted at China-based companies, it is entirely insufficient to address a number of other serious concerns regarding non-China based U.S. companies with direct or indirect ties to or relationships with the CCP, including the U.S. broker-dealers described above. The SEC’s limited effort in this regard is particularly troubling given the important role registered broker-dealers play in our financial markets, including the fact that many of these firms provide (or intend to provide) products and services directly to retail investors, which requires the collection of substantial amounts of customers’ personal information,” Rep. Luetkemeyer said.

View the full letter HERE.