Rep. Ritchie Torres (D-N.Y.) has asked the Securities and Exchange Commission to investigate whether plans by Truth Social’s parent company to sell Wall Street firms real-time access to President Trump’s posts could violate federal securities laws, according to a copy of the letter obtained by Axios.
Why it matters: The letter escalates scrutiny of Trump Media & Technology Group’s plan to monetize faster access for institutional investors to President Trump’s market-moving social posts. […]
Zoom in: In the letter sent Monday to SEC chair Paul Atkins, Torres urged the agency to review Truth API before its planned launch and determine whether it raises securities law, market manipulation or investor protection concerns. “
— There is a fundamental difference between a social media platform licensing ordinary data and a company substantially owned by the sitting President selling sophisticated traders faster access to his market-moving policy announcements,” the letter reads, while noting the president reportedly retains a roughly 41% stake in the company through a revocable trust.
–“Presidential communications capable of affecting stocks, bonds, oil, currencies, and other assets should not become a premium financial product that gives wealthy institutions a millisecond advantage over retail investors,” it continues.
–“Even a brief informational edge can generate substantial profits in algorithmic markets and erode confidence in a fair and level playing field.”
The other side: A TMTG spokesperson told Axios, “Truth API offers customers the fastest way to ingest publicly available Truth Social data.”
Source: Scoop: Lawmaker asks SEC to investigate Truth Social’s plan to monetize access to its data