Rep. Ritchie Torres Requests SEC Investigation into Truth Social's Data Monetization Plans

Representative Ritchie Torres (D-N.Y.) has formally requested that the Securities and Exchange Commission (SEC) investigate whether Truth Social's parent company, Trump Media & Technology Group (TMTG), is violating federal securities laws by planning to sell real-time access to President Trump's posts to Wall Street firms. The request comes as TMTG prepares to launch its Truth API product on August 1, which will provide access to posts from the platform's top trending accounts. TMTG executives have proposed a licensing fee of up to $100,000 per month for this service. Torres's letter to SEC Chair Paul Atkins raises concerns about potential market manipulation and investor protection, emphasizing the implications of providing sophisticated traders with faster access to presidential communications that could impact financial markets. A spokesperson for TMTG stated that the Truth API will offer customers quick access to publicly available data. Torres also suggested that the SEC collaborate with other federal agencies to examine potential conflicts of interest and ensure safeguards against suspicious trading related to presidential posts. This request follows growing bipartisan concerns regarding the product, with notable figures like Senate Minority Leader Chuck Schumer labeling it as a form of insider trading.