Webull shares plunged more than 20% Wednesday after a bipartisan U.S. House panel said the online brokerage remains structurally tied to China, raising new concerns about American investor data and billions of dollars in customer assets.
BULL fell as much as roughly 30% in premarket trading, from Tuesday’s $7.28 close toward the low-$5 range, before trimming part of the decline. The move puts Webull on track for one of its sharpest drops since going public.
The new findings extend a House Select Committee investigation that began in 2024, when lawmakers questioned Webull’s relationships with China-based Fumi Technology and Hunan Weibu and asked how U.S. customer data was protected.
Congress Says Webull Still Depends on China
The latest committee report alleges a wide gap between Webull’s presentation as a U.S.-based brokerage and the underlying structure of its business.
Lawmakers said Webull’s ownership, technical workforce, technology infrastructure, cross-border data routing, financing and compliance systems remain connected to China. The company is incorporated in the Cayman Islands and reportedly oversees about $24.6 billion in customer assets.
The committee also focused on Webull’s mainland subsidiary, which handled technology development and platform operations. As of the end of 2025, that unit employed 863 people, representing roughly 62% of Webull’s global workforce.
Webull Rejects the Committee’s Conclusions
Webull disputes the characterization.
A company spokesperson said its U.S. operations are run from Florida and New York and that U.S. customer data is stored and controlled domestically. Webull also called the committee report inaccurate and said some conclusions were unsupported.
Importantly, the report itself does not automatically impose a fine, trading restriction or U.S. ban.
That distinction matters for investors. The immediate stock reaction reflects regulatory uncertainty rather than a completed enforcement action.
The Selloff Is Much Worse Than Robinhood’s
The market is also treating the issue as largely Webull-specific.
Robinhood fell only a few percent while Interactive Brokers declined by an even smaller amount, far less than BULL. That divergence suggests investors are pricing in a company-specific regulatory discount rather than a broad collapse in online brokerage stocks.
Webull competes directly with Robinhood, while both platforms are expanding beyond traditional equity trading into crypto and other financial products.
The sector is also moving toward 24/7 tokenized stock trading, making control of financial infrastructure and customer data increasingly important.
