Webull stock on track for worst day in a year after lawmakers flag ties to China

Webull ( BULL ) stock plunged 20% on Wednesday after US lawmakers reportedly flagged that the company is "tied in structural ways" to China's government, risking its regulatory standing in the US.

The stock was on track for its worst daily drop since April 17, 2025, according to Dow Jones and FactSet market data. Over the past month, the stock has cratered by 40%.

On Wednesday, CNBC reported that a bipartisan House Select Committee on China assessment found that the company poses a national security risk and that concerns about its operations have "escalated" over the past year.

Webull is a digital investment platform headquartered in St. Petersburg, Fla. Yet the congressional report stated there was "a profound gap" between how the company marketed itself as a US company and how it is actually controlled.

"Webull's ownership architecture, technical workforce, technology infrastructure, cross-border data routing, corporate financing, and compliance frameworks are tied in structural ways to the People's Republic of China," the report said, per CNBC.

The company was founded in 2016 by former Alibaba ( BABA ) employee Anquan Wang and was affiliated with the Chinese holding company Hunan Fumi Information Technology. It went public on the Nasdaq via a special-purpose acquisition merger with SK Growth Opportunities in 2025.

Webull has 28.2 million users, and roughly 85% of its funded accounts are held by US users, according to SEC filings. The committee raised concerns that Webull's US customer data could be exposed should Webull be compelled to comply with Chinese laws and government requests.

Webull pushed back on the report, telling CNBC that it contained "significant inaccuracies and unsupported conclusions."