[Congressional Record Volume 171, Number 132 (Thursday, July 31, 2025)]
[Senate]
[Pages S5124-S5125]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 3380. Mr. McCORMICK submitted an amendment intended to be proposed
by him to the bill S. 2296, to authorize appropriations for fiscal year
2026 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. ___. PROHIBITIONS.
(a) Broker or Dealer Membership in a National Securities
Association.--
(1) In general.--Section 15A of the Securities Exchange Act
of 1934 (15 U.S.C. 78o-3) is amended by adding at the end the
following:
``(o) Prohibition on Membership Related to Chinese
Ownership.--
``(1) Definitions.--In this subsection:
``(A) Affiliate.--The term `affiliate' has the meaning
given the term in section 2 of the Bank Holding Company Act
of 1956 (12 U.S.C. 1841).
``(B) Control.--The term `control' means beneficially
owning, either directly or through 1 or more companies, more
than 25 percent of the voting securities of an entity.
``(C) U.S. person.--The term `U.S. person' means--
``(i) a United States citizen or an alien lawfully admitted
for permanent residence to the United States; or
``(ii) an entity organized under the laws of the United
States or any jurisdiction within the United States,
including a foreign branch of such an entity.
``(2) Prohibition.--A broker or dealer shall be prohibited
from being a member of a national securities association if
the broker or dealer--
``(A) is controlled by an entity organized under the laws
of, or otherwise subject to the jurisdiction of, the People's
Republic of China;
[[Page S5125]]
``(B) is controlled by a national of the People's Republic
of China who resides in the People's Republic of China; or
``(C) has an affiliate organized under the laws of, or
otherwise subject to the jurisdiction of, the People's
Republic of China that provides the broker or dealer with
essential services, including software development or
support, product development, or customer service.
``(3) Examination authority.--A national securities
association shall have such examination authority over a
member that is a broker or dealer as the association
determines to be necessary to ensure compliance with this
subsection, including the right to examine the books and
facilities of a broker or dealer located in a foreign
country.''.
(2) Termination.--On the date that is 5 years after the
date of enactment of this Act, section 15A of the Securities
Exchange Act of 1934 (15 U.S.C. 78o-3) is amended by striking
subsection (o), as added by paragraph (1) of this subsection.
(b) Investment Adviser Registration.--
(1) In general.--Section 203 of the Investment Advisers Act
of 1940 (15 U.S.C. 80b-3) is amended by adding at the end the
following:
``(o) Prohibition on Registration Related to Chinese
Ownership.--
``(1) Definitions.--In this subsection:
``(A) Affiliate.--The term `affiliate' has the meaning
given the term in section 2 of the Bank Holding Company Act
of 1956 (12 U.S.C. 1841).
``(B) Control.--The term `control' means beneficially
owning, either directly or through 1 or more companies, more
than 25 percent of the voting securities of an entity.
``(C) U.S. person.--The term `U.S. person' means--
``(i) a United States citizen or an alien lawfully admitted
for permanent residence to the United States; or
``(ii) an entity organized under the laws of the United
States or any jurisdiction within the United States,
including a foreign branch of such an entity.
``(2) Prohibition.--A person may not be registered as an
investment adviser if the person--
``(A) is controlled by an entity organized under the laws
of, or otherwise subject to the jurisdiction of, the People's
Republic of China;
``(B) is controlled by a national of the People's Republic
of China who resides in the People's Republic of China; or
``(C) has an affiliate organized under the laws of, or
otherwise subject to the jurisdiction of, the People's
Republic of China that provides the broker or dealer with
essential services, including software development or
support, product development, or customer service.
``(3) Examination authority.--The Commission shall have
such examination authority over an investment adviser as the
Commission determines to be necessary to ensure compliance
with this subsection, including the right to examine the
books and facilities of an investment adviser in a foreign
country.''.
(2) Termination.--On the date that is 5 years after the
date of enactment of this Act, section 203 of the Investment
Advisers Act of 1940 (15 U.S.C. 80b-3) is amended by striking
subsection (o), as added by paragraph (1) of this subsection.
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