Two Democratic senators have asked the Securities and Exchange Commission (SEC) to investigate a proposed new service from Trump Media & Technology Group (TMTG), focusing on whether the service would allow paying customers to receive potentially market-influencing presidential posts earlier.
The review must be completed by August 1st.
Elizabeth Warren and Adam Schiff sent a letter to SEC Chairman Paul Atkins on Tuesday, requesting a legal analysis to be completed before the service launches on August 1, including a review of provisions prohibiting insider trading and market manipulation.
Truth API is for paid customers.
According to TMTG, the service, called Truth API, will provide a real-time authorization stream of Truth Social posts on the platform that are "most likely to drive market volatility." Reuters previously reported that TMTG had discussed pricing the service at up to $100,000 per month.
Two senators believe this practice could give Wall Street institutions and high-net-worth clients an advantage with millisecond-level time differences, potentially benefiting high-frequency trading firms in particular. Previously, financial institutions and analysts relied primarily on manual monitoring of Truth Social activity, while the API interface would automatically push posts to paid users.
Senator questions market fairness
In their letter, Warren and Schiff stated that the service could undermine the integrity of capital markets and put ordinary investors at a disadvantage. They argued that Trump himself could benefit from the service's launch, while institutions and individuals paying subscription fees could gain trading advantages.
The two also pointed out that Trump frequently posts policy statements and other newsworthy information on Truth Social, including content related to the war with Iran, which can quickly trigger global market volatility. He has also repeatedly used the account to mention individual stocks.
TMTG has not yet responded.
CNBC reports that Trump Media has not yet responded to requests for comment, and the SEC has also declined to comment. The Trump family remains the largest shareholder in the publicly traded company. The company trades on Nasdaq under the ticker symbol DJT, which is also the initials of Trump's name.
Since its IPO in late March 2024, DJT's stock price has fallen by approximately 80% from its early levels. The market had previously viewed the stock as a bellwether for Trump's political standing.
- Service Name: Truth API
- Planned launch date: August 1st
- Reported pricing: up to $100,000 per month
