Warren, Schiff Urge SEC Probe of $100,000 Trump Media Feed Before Aug. 1 Launch
Updated
Updated · Quartz · Jul 29
Warren, Schiff Urge SEC Probe of $100,000 Trump Media Feed Before Aug. 1 Launch
3 articles · Updated · Quartz · Jul 29
Summary
A Tuesday letter from Sens. Elizabeth Warren and Adam Schiff asked SEC Chair Paul Atkins to assess whether Trump Media’s new Truth API violates insider-trading and market-manipulation laws before its Aug. 1 debut.
The service, announced July 16, would sell real-time access to posts from top Truth Social accounts; Reuters previously reported Trump Media discussed charging as much as $100,000 a month.
The senators said milliseconds of earlier access to President Donald Trump’s market-moving posts could advantage high-frequency traders, enrich wealthy subscribers and benefit Trump indirectly through his family-controlled stake.
Trump Media rejected the complaint, saying Democrats were mischaracterizing the product and confusing public with nonpublic information, while the SEC declined to comment.
Trump Media, whose DJT shares have fallen about 80% since listing in March 2024, runs the platform where Trump often posts policy announcements and stock-related messages that can move markets.
If a platform monetizes faster access to a president’s statements, where should regulators draw the line between data service and unfair market access?
How much of an edge could traders gain from Truth API, and are current market rules equipped to police that advantage?