In an op-ed in The Wall Street Journal, Senator Tuberville announced the effort to bar CCP-linked firms from owning American digital asset companies
WASHINGTON — U.S. Senator Tommy Tuberville (R-AL) yesterday announced a bipartisan bill to protect American financial data and investments from dangerous foreign interference. Along with U.S. Senator Kirsten Gillibrand (D-NY), Senator Tuberville introduced a bill to amend the Commodity Exchange Act to prohibit entities organized or established in the People’s Republic of China (PRC) or a subsidiary of such an entity from acquiring a U.S. digital asset broker, dealer, custodian, or exchange.
Senator Tuberville announced the legislation in an op-ed published in The Wall Street Journal.
“This bipartisan bill will help to wall off the burgeoning American digital commodity industry from CCP interference and preserve our data privacy and investor protection rights,” wrote Senator Tuberville.“It will also help ensure that America continues to lead in financial innovation, which is essential to maintaining America’s position in the world.”
The bill would prohibit the Commodity Futures Trading Commission (CFTC) from registering a digital commodity platform that is owned in whole or in part by an entity organized or established in the PRC. It also requires the CFTC to revoke the registration of any digital commodity platform in the event an entity with ties to the Chinese Communist Party (CCP) acquires all or any part of the ownership of the entity.
Digital commodity platforms collect and store personally identifiable information — including Social Security numbers, mailing addresses, and sensitive financial account data — of their users. Allowing entities based in the PRC to access this information raises serious concerns related to investor protection, data privacy, national security, sanctions compliance, and anti-money laundering efforts. Companies based in the PRC all ultimately answer to the CCP.
On Monday, Senator Tuberville sent an oversight letter to both the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), objecting to those agencies’ approval of a Chinese-connected crypto securities broker-dealer, Prometheum Ember Capital, LLC. In May, Senator Tuberville sent a similar letter to financial regulators asking for details surrounding Chinese-linked stock trading platforms operating in the U.S.
BACKGROUND:
The CCP’s efforts to mine data and surveil the public are well known, and decisive action is needed to safeguard the American people. Under current law, U.S. regulators have limited tools to block the purchase of a U.S. digital commodity platform by a CCP-tied entity. This bipartisan bill will help to wall off the burgeoning U.S. digital asset industry from Chinese interference and help to ensure continued American leadership in financial innovation.
Senator Tuberville believes the CCP seeks to overtake the United States as the top global superpower and that America must face China’s growing military and non-military threats with clear-eyed resolve.
Since assuming office in the U.S. Senate in 2021, Senator Tuberville has led and supported numerous efforts to protect American investments, intellectual property, and national security from China.
- Senator Tuberville is leading the call for an investigation into Webull Financial, LLC and Moomoo, Inc. — two Chinese-owned stock trading apps operating in the United States that are registered with the SEC and FINRA.
- Both apps are widely used by American investors and freely collect and store sensitive information about users, including Social Security numbers, mailing addresses, and financial account data.
- In May 2023, Senator Tuberville sent a letter to SEC Chair Gary Gensler and FINRA President and CEO Robert Cook calling for oversight of the trading platforms due to the potential CCP access of American user data. In the letter, Senator Tuberville asked for answers to critical questions about the ability of the SEC and FINRA to examine the Chinese companies’ compliance with U.S. law.
- In March, Senator Tuberville led a congressional delegation to Panama to discuss countering China’s growing influence in the region.
- On the trip, Senator Tuberville met with American and Panamanian officials to strategize ways to combat Chinese attempts to control the Panama Canal, which would give China enormous influence over global supply chains.
- To curb Chinese influence in the economy, Senator Tuberville introduced legislation to ban members of the CCP from receiving B-1 and B-2 visas to the United States for vacation and non-official government business.
- The CCP is responsible for trillions of dollars of intellectual property theft each year. To curb growing foreign influence and crime and discourage other Chinese nationals from joining the CCP, the bill cosponsored by Senator Tuberville would bar all 93 million CCP members from entering the United States using nonimmigrant B-1 and B-2 visas.
- Senator Tuberville believes the retirement savings of our military and federal government employees, known as the Thrift Savings Plan (TSP), should not be invested in the economies of our adversaries, such as China.
- Senator Tuberville wrote about this issue in the Wall Street Journal in a column entitled, “I’ll Keep Veterans’ Pensions Safe From Communism” and discussed the issue on Fox Business.
- Senator Tuberville continued the push for accountability from the Federal Retirement Thrift Investment Board (FRTIB) surrounding the board’s policy on foreign investments.
- Senator Tuberville placed a hold on nominees to the FRTIB until the nominees provided clarification regarding foreign investment policies, which forced the nominees to commit to opposing TSP investment in China.
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