Democratic senators have urged the Securities and Exchange Commission to investigate whether Trump Media & Technology Group's new paid data feed violates insider-trading laws. The product, Truth API, went live around August 1 and charges hedge funds and high-frequency trading firms up to $100,000 a month for millisecond-early access to posts from Donald Trump and other prominent Truth Social accounts. A lower tier costs $60,000 monthly on a three-year commitment.
Senators Elizabeth Warren, Adam Schiff, and Chuck Schumer called the arrangement an abuse of the presidency for personal gain in a letter to SEC chairman Paul Atkins. Former SEC official Renée Jones said the service likely breaches insider-trading rules, while ex-SEC attorney Virginia Canter warned it normalises the use of non-public information. TMTG spokesperson Shannon Devine denied the service constitutes insider trading.
The controversy follows a 23% surge in DJT shares during July, even as the company reported trailing revenue of just $3.73 million against a market capitalisation near $2.73 billion and negative EBITDA of $416.3 million. At least five high-frequency trading firms had signed up by late July, according to the Wall Street Journal. Trump owns a 41% stake in the company.