Senators Warren and Schiff expressed serious concerns regarding Trump Media & Technology Group's (TMTG) recently announced Truth API, which provides a paid service for real-time access to posts from Trump's Truth Social platform.
They argue that this service could undermine market integrity by allowing wealthy individuals and firms to gain an unfair advantage in trading based on Trump's posts, which often contain significant market-moving information.
The senators requested that SEC Chair Paul Atkins conduct a legal analysis of the service before its launch on August 1, emphasizing that it could facilitate insider trading and market manipulation. TMTG, which is publicly traded under the ticker DJT, has seen its share price decline approximately 80% since its debut in March 2024.
The company, with Trump's family as its largest stakeholder, has diversified into various sectors, including cryptocurrency and fusion power. The Truth API is expected to charge up to $100,000 per month for access, raising further concerns about the implications for everyday investors and the overall market.
TMTG's interim CEO defended the service, suggesting that the senators misunderstood the nature of public and nonpublic information. As the situation develops, the SEC's response could significantly impact TMTG's operations and investor sentiment