Trump’s Latest Truth Social Move Is Facing Renewed Scrutiny After a Lawmaker Calls On The SEC To Investigate

Trump Media & Technology Group's plan to sell institutional investors real-time access to posts on Truth Social has drawn scrutiny, with a member of Congress requesting that securities regulators examine whether the product raises concerns related to market fairness and investor protections.

Rep. Ritchie Torres, a Democrat from New York, sent a letter Monday to Securities and Exchange Commission Chairman Paul Atkins requesting that the agency review Truth API, a new product from Trump Media & Technology Group (TMTG) scheduled to launch on Aug. 1, according to Axios.

Truth API is designed to provide subscribers with real-time access to publicly available posts from the top 10 trending accounts on Truth Social. Axios previously reported that the service could later be expanded to include additional accounts for customers willing to pay higher licensing fees.

"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," Torres wrote in his letter, according to Axios.

Torres asked the SEC to determine whether the product raises issues involving securities laws, market manipulation, or investor protection standards. He also requested that the agency disclose whether it is reviewing the service and what safeguards may exist to identify unusual trading activity surrounding presidential posts.

The congressman additionally suggested that the SEC coordinate with the Commodity Futures Trading Commission, the Office of Government Ethics, and other federal agencies to evaluate any potential conflicts of interest.

"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," Torres wrote in the letter obtained by Axios.

Trump Media's Truth API offering has attracted attention since details about the product emerged earlier this month. Reuters reported on July 16 that TMTG executives discussed licensing arrangements that could cost institutional clients as much as $100,000 per month for access to the data feed, according to Reuters.

Interim Chief Executive Kevin McGurn told Axios that the service provides "the fastest way to ingest publicly available Truth Social data." A spokesperson for the company reiterated that position following Torres' request for an SEC review.

The debate surrounding the product has expanded beyond Capitol Hill. Senate Minority Leader Chuck Schumer described Truth API as "the definition of insider trading" during remarks last week, while Senate Majority Leader John Thune acknowledged that the product would likely receive legal and regulatory scrutiny because it represents relatively new territory for financial markets, according to Axios.

President Donald Trump remains a significant shareholder in Trump Media through a revocable trust. Torres' letter noted reports indicating that Trump retains an approximately 41% stake in the company.

Trump Media has faced regulatory scrutiny before. The SEC previously investigated Digital World Acquisition Corp., the special purpose acquisition company that merged with TMTG. In 2023, Digital World agreed to a settlement with the SEC over allegations tied to disclosures surrounding the merger process, according to The Wall Street Journal.

TMTG's shares have risen in recent weeks as investors responded to the company's efforts to expand its business beyond social media. The company has increasingly emphasized data licensing, financial services, and digital products as part of its broader strategy.

Neither the SEC nor Trump Media has indicated whether the agency has opened a formal review of the product. Truth API remains scheduled to debut on Aug. 1.