Torres presses SEC on Trump Media's Truth API in latest Democratic ethics fight

Rep. Ritchie Torres has asked the Securities and Exchange Commission (SEC) to investigate whether Trump Media & Technology Group’s new Truth API violates federal securities law. 

The product will sell Wall Street firms faster access to President Trump’s Truth Social posts beginning August 1.

Can the President monetize access to his social media posts? 

New York Democrat, Rep. Ritchie Torres, has submitted a letter requesting the Securities and Exchange Commission (SEC) Chair Paul Atkins investigate whether the new Truth API that would give Wall Street firms faster access to the President’s Truth Social posts violates the law. 

Torres grilled Treasury Secretary Scott Bessent over tariffs and Federal Reserve independence at a February hearing, and in March, he called the president’s decision to strike Iran without congressional sign-off unlawful. 

Now, Torres is arguing that because Trump still holds roughly 41% of Trump Media through a revocable trust, he should not be able to charge traders for a speed advantage on his market-moving statements. That, he wrote, is “fundamentally different” from an ordinary platform selling access to its feed.

The letter asks Atkins to determine whether the API’s structure and marketing go against federal securities laws, market-manipulation rules, or broker-dealer obligations.

Torres also pushed the agency to coordinate with the Commodity Futures Trading Commission (CFTC) and the Office of Government Ethics, and to say plainly whether it has opened a review. 

Senate Minority Leader Chuck Schumer referred to the product as a form of insider trading while Senate Majority Leader John Thune, a South Dakota Republican, said the product is “plowing new ground” in predictive markets.

How does the Truth API work? 

Trump Media unveiled the API service last week, explaining that it delivers real-time posts from Truth Social’s 10 most-trending accounts, such as Trump, the White House, FBI Director Kash Patel, and Health and Human Services Secretary Robert F. Kennedy Jr. 

The company has reportedly discussed licensing fees as high as $100,000 per month, with a discounted rate of $60,000 per month for a three-year plan. Clients willing to pay extra will also gain access to posts from more accounts. 

The company’s interim CEO, Kevin McGurn, has promoted the licensing as a source of steady, high-profit income. He also pointed out that financial markets already move based on what the president posts, but did not acknowledge the speed advantage the product would give rich institutions over retail traders. 

A Trump Media (NASDAQ: DJT) spokesperson also defended the service, saying it’s “the fastest way to ingest publicly available Truth Social data.”

What is delaying the CLARITY Act?

President Trump’s financial interests, particularly his involvement in cryptocurrency, have always been treated as controversial, which has only gained more traction since Trump disclosed nearly $1.4 billion in crypto-related income for 2025. Cryptopolitan reported that Democrats are refusing to support the CLARITY Act despite its August deadline, unless it carries ethics language covering how officials profit from digital assets while in office.

Cryptopolitan also reported that Democrats like Sen. Elizabeth Warren and four colleagues demanded hearings in June over a reported $500 million UAE-linked investment in World Liberty Financial, the Trump family crypto venture. 

The White House has agreed to some ethics provisions in the crypto bill, including barring federal officials from issuing digital assets. But Democrats are concerned that the Department of Justice would be the main enforcer, instead of state attorneys general. 

Sen. Angela Alsobrooks (D-Md.), a negotiator on the CLARITY Act, called the DOJ enforcement proposal “an unserious offer.” Meanwhile, the White House has blamed Democrats for potentially blocking the bill.

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