Rep. Torres Presses SEC on Trump Media’s New Insider Trading API

WASHINGTON, D.C. – Yesterday, Congressman Ritchie Torres (NY-15) sent a letter to Securities and Exchange Commission Chairman Paul Atkins raising serious concerns about a new product from Trump Media & Technology Group known as the “Truth API,” which reportedly plans to sell Wall Street firms accelerated, machine-readable access to President Donald Trump’s posts on Truth Social.

According to public reporting, the service will provide institutional customers with posts from highly influential accounts in milliseconds beginning August 1, enabling automated trading systems to react before ordinary investors receive the same information through conventional channels. Rep. Torres noted that President Trump routinely uses Truth Social to announce or discuss decisions involving tariffs, foreign affairs, energy policy, and individual companies, statements that can immediately move securities, commodities, and other financial markets. Trump Media has promoted the service on the premise that markets already move on these posts and has described the API as a potentially high-margin, recurring source of revenue. President Trump reportedly retains an approximately 41 percent ownership interest in the company through a revocable trust.

Rep. Torres argued that a company substantially owned by the sitting President selling sophisticated traders faster access to his market-moving policy announcements is fundamentally different from a platform licensing ordinary data. He warned that even a brief informational edge can generate substantial profits in algorithmic markets and erode confidence in a fair and level playing field.

The letter asks the Commission to evaluate whether Truth API’s structure, marketing, operation, or use implicates federal securities laws, market-manipulation protections, broker-dealer obligations, or other investor-protection requirements, and to coordinate with the Commodity Futures Trading Commission, the Office of Government Ethics, and other federal entities on the broader market-integrity and conflict-of-interest concerns raised by monetizing accelerated access to official presidential communications.

The full letter reads:

“I write regarding reports that Trump Media & Technology Group plans to sell Wall Street firms accelerated, machine-readable access to President Donald Trump’s posts on Truth Social through a new product known as “Truth API.” According to public reporting, the service will provide institutional customers with posts from highly influential accounts “in milliseconds,” beginning August 1, enabling automated trading systems to react before ordinary investors who access the same information through conventional channels.

“The President routinely uses Truth Social to announce or discuss decisions involving tariffs, foreign affairs, energy policy, and individual companies, statements that can immediately move securities, commodities, and other financial markets. Trump Media has expressly promoted the new service on the premise that “markets already move” on these posts and has characterized the API as a potentially high-margin, recurring source of revenue. President Trump reportedly retains an approximately 41 percent ownership interest in the company through a revocable trust.

“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. 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. Even a brief informational edge can generate substantial profits in algorithmic markets and erode confidence in a fair and level playing field.

“I therefore respectfully request that the Securities and Exchange Commission promptly evaluate whether the Truth API’s structure, marketing, operation, or use implicates federal securities laws, market-manipulation protections, broker-dealer obligations, or other investor-protection requirements. The Commission should also coordinate with the Commodity Futures Trading Commission, the Office of Government Ethics, and other appropriate federal entities to assess the broader market-integrity and conflict-of-interest concerns raised by monetizing accelerated access to official presidential communications.

“Please provide written responses to the following:

1. Will the Commission review the Truth API before its announced August 1 launch, and has Trump Media consulted the Commission about the service?
2. What safeguards will ensure that paying customers or affiliates do not receive presidential posts, or their substance, before the public?
3. Will the Commission examine whether this speed advantage could enable manipulation, fraud, or other abusive trading?
4. Will Trump Media be required to disclose the service’s customers, pricing, distribution methods, internal controls, and financial benefits to the company or its principal shareholders?
5. What surveillance and audit measures will the Commission use to identify suspicious trading immediately before or after market-moving presidential posts?

“American markets cannot remain credible if presidential power is converted into a privately sold trading advantage. This arrangement raises serious concerns about market fairness, investor protection, and public trust, and it warrants immediate Commission scrutiny. I respectfully request a written response outlining the Commission’s planned review and any actions it intends to take regarding the service. Thank you for your prompt attention to this matter.”

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