Scoop: Lawmaker asks SEC to investigate Truth Social's plan to monetize access to its data
Summary
Rep. Ritchie Torres has asked the Securities and Exchange Commission (SEC) to investigate whether Truth Social’s parent company, Trump Media & Technology Group (TMTG), breaking federal securities laws by charging Wall Street firms for faster access to President Trump’s posts. The company plans to launch a product called Truth API that sells real-time data access, raising concerns about fair trading and possible conflicts of interest.Key Facts
- Truth Social’s parent company, TMTG, plans to sell early access to President Trump’s posts to investors through a product called Truth API starting August 1.
- The service would charge up to $100,000 per month for access to posts from top trending accounts, including President Trump’s.
- Rep. Ritchie Torres sent a letter to the SEC asking them to review whether this service could violate securities laws or enable market manipulation.
- Torres highlighted that President Trump owns about 41% of TMTG through a trust, raising conflict of interest concerns.
- Senate leaders from both parties have expressed worry about the fairness and legality of the new product.
- TMTG says Truth API only provides the fastest way to access publicly available data and is not insider information.
- The SEC has previously investigated TMTG’s related companies and reached a settlement with a company linked to TMTG in 2023.
- TMTG is currently suing 20 media organizations, including Axios, for defamation.
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