- Ritchie Torres urged the SEC to investigate Trump Media’s Truth API over market fairness and investor protection concerns before launch.
- Truth API will provide institutional clients real-time access to publicly available Truth Social posts through paid subscriptions and monthly plans.
- Lawmakers also urged broader federal oversight while Trump Media shares gained despite regulatory scrutiny surrounding the proposed service expansion plans.
U.S. Representative Ritchie Torres has asked the Securities and Exchange Commission to investigate whether Trump Media & Technology Group’s planned Truth API could violate federal securities laws. Torres argued that selling faster access to President Donald Trump’s Truth Social posts could give institutional investors an unfair market advantage while raising investor protection concerns.
Torres submitted the request in a letter to SEC Chair Paul Atkins on Monday, urging the regulator to determine whether the product creates risks involving securities laws, market manipulation, or market fairness. Additionally, he asked the agency to assess whether the service could undermine confidence among retail investors.
The congressman argued that the proposal differs from a typical data licensing business because the platform is controlled by a company substantially owned by the current U.S. president. According to the letter, President Donald Trump retains roughly a 41% stake in Trump Media through a revocable trust.
Moreover, Torres warned that even milliseconds of early access could allow algorithmic trading firms to react before ordinary investors, enabling them to profit from market-moving presidential posts before retail participants receive the same information.
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Truth API Targets Wall Street Firms With Premium Data Access
Trump Media plans to launch the Truth API on Aug. 1 for institutional customers. The service will initially provide real-time access to publicly available posts from the platform’s 10 most-trending accounts.
Reuters previously reported that Trump Media has marketed the product to Wall Street firms with subscription fees reaching $100,000 per month. Interim Chief Executive Officer Kevin McGurn also indicated that customers paying higher fees could eventually gain access to additional accounts.
However, Trump Media rejected claims that the product creates an unfair advantage. A company spokesperson stated that the Truth API simply offers customers the fastest way to receive publicly available Truth Social content.
Besides requesting an SEC investigation, Torres urged the agency to coordinate with the Commodity Futures Trading Commission, the Office of Government Ethics, and other federal regulators. He also requested details on whether the SEC has already begun reviewing the product. Furthermore, he asked what safeguards would detect suspicious trading linked to presidential social media posts.
Congressional scrutiny has expanded beyond Torres’ request. Senate Minority Leader Chuck Schumer described the Truth API as “the definition of insider trading.” Meanwhile, Senate Majority Leader John Thune acknowledged that the product would likely receive legal and regulatory examination because it presents new questions for financial markets.
The SEC has previously examined matters involving Trump Media, including investigations related to its accounting firm and Digital World Acquisition Corp., the special purpose acquisition company that merged with the business. Regulators later settled with Digital World Acquisition Corp. in 2023, while Trump Media shares have climbed in recent weeks as investors respond to the company’s efforts to diversify beyond social media despite increasing regulatory attention.
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