SEC to track U.S. capital flowing to hostile nations—and name names
S. 3562 — Disclosing Investments in Foreign Adversaries Act of 2025 · Filed by Rick Scott (R-FL) · 1 cosponsor · Introduced Dec 18, 2025 · Referred to committee
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What it does
This bill requires private investment fund advisers managing $150 million or more to disclose annually to the SEC how much of their clients' money is invested in countries deemed hostile to the U.S. (China, Russia, Iran, North Korea, and others designated by the State Department). It also requires companies raising $25 million or more through private securities offerings to disclose their ownership, whether they have ties to hostile nations, and how they plan to use the money—with the SEC publishing quarterly reports on issuers connected to countries of concern. Citizens gain transparency into whether their retirement funds or institutional investments are flowing to adversarial regimes; the SEC gains enforcement authority to restrict future offerings by non-compliant issuers.
Why we flagged it
The bill's core mechanism is a transparency and reporting requirement, not a prohibition or subsidy. It mandates disclosure of capital flows to hostile nations and gives the SEC authority to enforce compliance through future offering restrictions. The functional character is regulatory transparency with national-security alignment.
What the text implies
- SEC gains discretionary authority to 'set conditions that limit the future use of covered exempted transactions' for non-compliant issuers—a de facto enforcement power that could restrict capital formation for companies with foreign ties, even if disclosure is complete.
- Definition of 'country of concern' is delegated to SEC in consultation with State and Treasury, creating regulatory flexibility but also potential for political weaponization of the definition to target specific nations or industries.
The full analysis lists 5 implications of this text.
Who it affects
Ordinary citizens and institutional investors (pension funds, endowments, insurance companies) gain transparency into whether their capital is being deployed to hostile foreign regimes, enabling informed decision-making and reducing hidden geopolitical risk. The SEC gains tools to enforce compliance and restrict future offerings by bad actors, strengthening market integrity and national security alignment without imposing direct costs on citizens.