Webull Corporation (NASDAQ:BULL) shares are trading lower Thursday extending a volatile first week of public trading following its SPAC merger with SK Growth Opportunities.

What To Know: The sharp decline comes after a report from Fox Business’s Charles Gasparino indicated that U.S. lawmakers are pushing the SEC to investigate Webull’s Chinese ties and potentially move toward delisting the brokerage. Senator Tommy Tuberville reportedly warned of "potentially severe national security implications," citing Webull's connections to China.

The concerns are escalating as U.S.-China trade tensions flare up again, with U.S. Treasury Secretary Scott Bessent stating that all options, including delistings, remain "on the table." Founded in 2016 by former Alibaba and Xiaomi executive Wang Anquan, who still serves as global CEO, Webull's ties to China are drawing bipartisan scrutiny amid a wider reevaluation of Chinese firms on U.S. exchanges.

Webull's public debut was marked by early enthusiasm and rapid price swings, but that excitement has been quickly overtaken by political pressure and regulatory uncertainty.

If Webull faces regulatory setbacks or a potential delisting, other U.S.-based brokerage firms stand to gain market share. Robinhood Inc. (NASDAQ:HOOD), Coinbase Inc. (NASDAQ:COIN), Charles Schwab Inc. (NYSE:SCHW) and Interactive Brokers Inc. (NASDAQ:IBKR) are among those likely to benefit. Robinhood in particular may be the biggest winner, given Webull's direct competition as a platform appealing to the same retail trading demographic.

BULL Price Action: Webull shares were down 26.8% at $26.61 at the time of writing, according to Benzinga pro.

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