Senators Elizabeth Warren and Adam Schiff argued that Truth API service could give Wall Street firms an unfair trading advantage and hurt retail investors.
- Trump Media reportedly plans to launch a paid Truth API feed offering the fastest access to posts from top Truth Social accounts, including President Trump’s, for a reported $60,000 to $100,000 per month.
- The senators said the arrangement raises concerns because Trump’s posts often contain announcements that can move financial markets within minutes.
- Warren and Schiff have asked the SEC to determine whether the Truth API could violate federal securities laws, including rules related to insider trading and market manipulation.
U.S. Senators Elizabeth Warren and Adam Schiff have asked the U.S. Securities and Exchange Commission (SEC) to investigate Trump Media & Technology Group’s (DJT) Truth API service, arguing that it could give Wall Street firms an unfair trading advantage.
DJT stock edged 1.4% lower at the time of writing but is on track for its biggest monthly gains since October 2024.
Faster Access To President’s Posts
Trump Media plans to launch a paid data feed on August 1 that would provide subscribers with what it describes as the fastest access to posts from the 10 most influential Truth Social accounts, including President Trump’s own account. A Reuters report from earlier this month indicated the service could cost between $60,000 and $100,000 per month.
The senators said the arrangement raises concerns because Trump’s posts often contain policy announcements and other information that can move financial markets within minutes.
“Trump Media’s plan to disseminate market-moving information through the President’s own company, while charging insiders for access ahead of the public for the benefit of his company—and to the detriment of the investing public—represents a shocking abuse of the office of the President and the trust of the American public for his personal gain,” the letter read.
Concerns Over Market Fairness
In their letter, Warren and Schiff argued that high-frequency trading firms could use the feed to react to market-moving information before ordinary investors see it.
They pointed to several instances in which Trump’s Truth Social posts appeared to influence individual stocks, including Citigroup, Palantir and Intel. They also noted that comments related to tariffs, geopolitical developments and cryptocurrency policy have previously affected stock, oil and crypto markets.
Last month, Trump posted about Citigroup on Truth Social to praise the company’s first quarter performance and congratulate the CEO. Earlier this year, Trump also posted about Palantir, stating that the firm has proven to have “great war-fighting capabilities and equipment.”
In April, President Trump used Truth Social to praise Intel, saying the company’s stock was continuing to rise and that he was proud of its performance, which he said had generated more than $30 billion for the United States in the previous 90 days.
According to a CNBC report, Trump Media has not yet responded to requests for comment on the letter while the SEC declined to comment.
Warren, Schiff Question SEC On Protection Of Retail Investors
The lawmakers also highlighted Trump’s financial interest in Trump Media. According to a Reuters report, Trump owns roughly 41% of the company through a trust overseen by his children. Trump Media has said customers have already signed up for the product ahead of its launch, although the company has not disclosed their identities.
Warren and Schiff have asked the SEC to determine whether the Truth API could violate federal securities laws, including rules related to insider trading and market manipulation. They also want the agency to explain how it plans to protect retail investors and maintain confidence in the fairness of U.S. capital markets if select firms receive faster access to presidential communications.
Retail Sentiment Remains Bullish
Retail sentiment surrounding DJT on Stocktwits has remained ‘bullish’ over the past 24 hours, amid ‘high’ message volumes.
The stock has slumped more than 29% so far this year.
Also read: Capricor’s DMD Therapy Gets Lancet Backing Ahead Of August FDA Showdown – CEO Says Publication ‘Reinforce Our Confidence’ For Approval
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