U.S. Rep. Ritchie Torres has asked the SEC to investigate whether Trump Media & Technology Group’s (TMTG) plan to sell real-time access to President Donald Trump’s Truth Social posts could violate federal securities laws.
The request adds fresh regulatory scrutiny to TMTG’s upcoming Truth API product, which is scheduled to launch on Aug. 1 and aims to provide institutional investors with faster access to market-moving posts.
Torres Raises Market Fairness Concerns
In a letter sent Monday to SEC Chair Paul Atkins, Torres urged the regulator to review the Truth API before its launch and assess whether it creates risks related to securities laws, market manipulation, or investor protection.
Torres argued that there is a significant distinction between a social media company licensing public data and a platform controlled by a company substantially owned by the sitting U.S. president selling premium access to presidential communications that can influence financial markets.
According to the letter, President Trump retains about a 41% stake in TMTG through a revocable trust.
Torres warned that giving institutional traders even a slight timing advantage over retail investors could allow algorithmic trading firms to profit from market-moving presidential announcements while undermining confidence in fair markets.
Truth API Targets Institutional Clients
The Truth API will initially provide real-time access to publicly available posts from the platform’s 10 most-trending accounts.
Reuters previously reported that TMTG has marketed the service to Wall Street firms with licensing fees of up to $100,000 per month. Interim CEO Kevin McGurn also said the product could later expand to include more accounts for customers willing to pay higher fees.
Responding to the criticism, a TMTG spokesperson said the Truth API simply provides customers with “the fastest way to ingest publicly available Truth Social data.”
Calls for Federal Review
Beyond the SEC, Torres urged regulators to coordinate with the Commodity Futures Trading Commission (CFTC), the Office of Government Ethics, and other federal agencies to examine potential conflicts of interest.
He also asked the SEC to disclose whether it is already reviewing the product and what safeguards would be implemented to detect suspicious trading activity surrounding presidential social media posts.
Bipartisan Scrutiny Builds
Last week, Senate Minority Leader Chuck Schumer described the Truth API as “the definition of insider trading”. Meanwhile, Senate Majority Leader John Thune said the product would likely face legal and regulatory review, describing it as “new territory” for financial markets.
The SEC has previously scrutinized TMTG, including investigations involving its accounting firm and Digital World Acquisition Corp. (DWAC), the special purpose acquisition company that merged with Trump Media. The agency reached a settlement with DWAC in 2023.
Despite the mounting regulatory attention, TMTG shares have rallied in recent weeks as investors bet on the company’s efforts to expand beyond social media, although the stock remains below the highs reached following its 2024 public market debut.
Related: Trump Media Launches Paid API for Real-Time Truth Social Posts Ahead of August Debut
