Shares of Webull Corporation Class A Ordinary Shares (ticker: BULL) fell 19.51% to $5.86 on Wednesday after a House panel focused on China raised national security concerns about the trading platform's operations. The House Select Committee on China linked the company's China-related business to potential risks involving American user data and market oversight, and the sell-off pushed Webull's market value down toward roughly $3.1 billion as political scrutiny intensified.

House Panel Flags China Ties; Webull Pushes Back

The House Select Committee on China said Webull's ties to China could create national security risks for American users. Chairman John Moolenaar concentrated on the company's China-based operations and their potential access to sensitive financial and personal data. The committee also questioned whether those links could expose U.S. customers and their information to Chinese government authorities.

Webull rejected the report's conclusions, saying the document contained major inaccuracies about the company's operations and corporate structure. The company also disputed claims connecting its business framework to what it characterized as unsupported national security concerns involving American customers.

The market reaction was nonetheless severe: BULL lost nearly one-fifth of its value in a single session. The latest scrutiny adds pressure to a company that only became publicly traded in the United States in 2025. Webull was founded by Wang Anquan in 2016 and later expanded its trading services across the country. Its American headquarters are in St. Petersburg, Florida, and the platform now serves customers across several international markets.

China Links Put Data Practices Under Scrutiny

Wednesday's assessment was not the committee's first look at Webull. In December 2024, lawmakers sent the company a letter outlining concerns over its ownership and operational connections. That letter also questioned whether China-linked technologies and personnel could affect user data security and compliance with American financial rules.

Webull currently operates across 18 markets and reports more than 28 million users on its international trading platforms. Its services include stocks, bonds, derivatives, products, and prediction markets for customers in several regions. That broad product range makes data handling, customer protection, and regulatory oversight central issues for the expanding financial platform.

Part of the committee's concern centers on whether Chinese laws could require companies to assist government authorities with information requests. The issue has become a broader policy concern across technology, telecommunications, financial services, and other data-heavy industries. Webull maintains that the latest congressional assessment misrepresents its corporate structure, operations, and overall risk profile.

Regulatory Uncertainty Persists

The central question is whether U.S. agencies will take formal regulatory or enforcement action against Webull. The House committee can raise security concerns, but any direct restrictions or enforcement measures would be decided by the relevant federal authorities. So far, the report does not confirm any new regulatory restriction affecting the company's existing U.S. operations.

The uncertainty could still weigh on a business that depends heavily on customer trust, market access, and regulatory approval. A deeper federal review could increase legal costs and place additional pressure on Webull's compliance and governance operations. It could also prompt management to provide more detail about data storage, internal controls, and the company's China-related business structure.

For now, Webull continues operating while its shares absorb the impact of heightened political and regulatory scrutiny. The 19.51% single-day decline underscored how quickly national security concerns can affect the valuation of a financial technology company. BULL has shown sensitivity to statements from lawmakers, regulators, and company officials, and the underlying concerns remain unresolved.

This article was adapted from reporting by Blockonomi.