Webull Corp's (NASDAQ: BULL) congressional scrutiny is not just a Webull story. A U.S. House investigation has put a spotlight on how China-linked brokerage platforms operate in the U.S., and that matters for Futu Holdings Limited (NASDAQ: FUTU) and UP Fintech Holding Limited (NASDAQ: TIGR) — two companies that already have their own regulatory exposure in China.

Webull Put the Category in Focus

The House Select Committee on China said Wednesday that Webull's ownership, technology and operations are tied to China in "structural ways" that pose a national security risk, citing a mainland unit that employs 62% of the company's global workforce and $24.6 billion in U.S. customer assets it said are exposed. Webull called the report "deeply disappointing," saying it contained "significant inaccuracies" and that U.S. customer data in the United States.

The immediate market reaction was sharp, but the more interesting investor question is what happens to companies that were not the target of the investigation but operate in a similar cross-border brokerage ecosystem.

That is where Futu and UP Fintech become relevant.

Futu Already Has a China Overhang

Futu is not facing the same congressional investigation. But it already has a separate regulatory issue in mainland China.

In May, Futu disclosed that the China Securities Regulatory Commission had issued an investigation notice and proposed an administrative penalty of approximately RMB1.85 billion, or about $271 million, involving securities, public-fund sales and futures activities in mainland China. The proposed penalty remains subject to further proceedings and a final determination.

Futu said mainland-China funded accounts represented approximately 13% of its total funded accounts at the end of the first quarter, while business outside mainland China remained normal.

That distinction matters because Futu's operating growth is increasingly coming from international markets.

In the second quarter, Futu's funded accounts rose 33.6% year over year to 3.84 million, while client assets jumped 43.6% to HK$1.40 trillion. Revenue increased 35.6% to HK$7.2 billion and net income climbed 41.6%. Management said international markets were driving new funded-account additions, with Malaysia leading growth for the third consecutive quarter.

The Market Has a New Question

UP Fintech has its own China regulatory history. In May, the CSRC's Beijing bureau said certain subsidiaries had conducted unlicensed cross-border securities, fund and futures business in mainland China, imposing administrative penalties of about RMB308.1 million, or roughly $46.0 million, and confiscating approximately RMB103.1 million, or about $15.4 million, in illegal income. Mainland-China retail client assets represented about 10% of total client assets at the end of 2025.

The distinction is important.

Webull's congressional investigation does not establish that Futu or UP Fintech face the same U.S. regulatory concerns. But it does give investors a reason to reassess whether China-linked ownership, technology and cross-border operations deserve a broader risk premium.

For investors, the next signals are whether congressional scrutiny expands beyond Webull, whether Chinese regulators continue tightening rules around cross-border brokerages, and whether Futu and UP Fintech can keep growing their international businesses fast enough to dilute their mainland exposure.

The question is no longer simply whether Webull has a China problem — it is whether the market is beginning to price China risk across an entire group of U.S.-listed fintechs.

BULL Stock Price Activity: Webull shares are trading lower by 1.44% at $5.80 at the time of publication on Thursday, according to market data.