Congressman Ritchie Torres sent a letter Monday to Securities and Exchange Commission chair Paul Atkins urging the agency to investigate Truth Social's upcoming Truth API product before its planned Aug. 1 launch. Torres raised concerns that the service, which will provide real-time access to posts from the platform's top 10 trending accounts for licensing fees up to $100,000 per month, could enable market manipulation because the President reportedly retains a roughly 41% stake in parent company TMTG through a revocable trust. The letter argues that selling faster access to presidential communications capable of affecting stocks, bonds, oil, and currencies creates an unfair advantage for wealthy institutions over retail investors.
Truth API Offers Real-Time Access to Top Trending Accounts for $100,000 Monthly Fee
TMTG's Truth API product is slated to debut Aug. 1 and will provide real-time access to publicly available posts from the platform's top 10 trending accounts, Axios reported last week. TMTG executives reportedly pitched the service for a licensing fee of up to $100,000 per month, per Reuters. Interim CEO Kevin McGurn told Axios the API can be expanded to more accounts for customers willing to pay more in the future. A TMTG spokesperson told Axios, "Truth API offers customers the fastest way to ingest publicly available Truth Social data."
Torres Letter Cites Market Manipulation and Investor Protection Concerns
In the letter sent Monday to SEC chair Paul Atkins, Torres urged the agency to review Truth API before its planned launch and determine whether it raises securities law, market manipulation or investor protection concerns. "There is a fundamental difference between a social media platform licensing ordinary data and a company substantially owned by the sitting President selling sophisticated traders faster access to his market-moving policy announcements," the letter reads, while noting the president reportedly retains a roughly 41% stake in the company through a revocable trust. "Presidential communications capable of affecting stocks, bonds, oil, currencies, and other assets should not become a premium financial product that gives wealthy institutions a millisecond advantage over retail investors," it continues. "Even a brief informational edge can generate substantial profits in algorithmic markets and erode confidence in a fair and level playing field." Torres also suggested the SEC coordinate with the Commodity Futures Trading Commission, the Office of Government Ethics and other appropriate federal entities to scrutinize any potential conflicts of interest. He asked the SEC to disclose whether it is reviewing the product and what safeguards will be in place to detect suspicious trading around presidential posts.
Bipartisan Lawmakers Question Legality of Presidential Post Monetization
Torres' letter is the latest in a string of concern from both sides of the aisle around the product. Last week, Senate Minority Leader Chuck Schumer (D-N.Y.) said "Truth API is the definition of insider trading." On Tuesday, Senate Majority Leader John Thune (R-S.D.) told reporters on Capitol Hill, "My assumption is that'll have some regulatory look — legal look. My assumption is that'll get tested somewhere. I don't know the answer to that. It's kind of plowing new ground, new territory in these predictive markets."
SEC Previously Settled with TMTG SPAC Partner in 2023
The SEC has previously probed TMTG's accounting firm and the SPAC company that merged with TMTG. The agency settled with the SPAC, Digital World Acquisition Corporation, in 2023. TMTG stock has rallied in recent weeks on optimism around its business model expansion, but it remains well below its 2024 post-SPAC merger peak. In 2023, TMTG sued 20 media organizations, including Axios, for defamation. Litigation is ongoing.
FAQ
What is Truth API and when does it launch?
Truth API is a product from TMTG that provides real-time access to publicly available posts from Truth Social's top 10 trending accounts. The service is slated to debut Aug. 1 with licensing fees up to $100,000 per month.
Why did Congressman Torres ask the SEC to investigate Truth API?
Torres sent a letter Monday to SEC chair Paul Atkins citing concerns that the product could enable market manipulation and give wealthy institutions an unfair advantage over retail investors. The letter notes the President reportedly retains a roughly 41% stake in TMTG through a revocable trust, raising potential conflicts of interest around monetizing access to presidential communications that can move markets.
What did Senate leaders say about the product?
Senate Minority Leader Chuck Schumer said last week "Truth API is the definition of insider trading." Senate Majority Leader John Thune told reporters on Tuesday the product will likely face regulatory and legal scrutiny, calling it "plowing new ground, new territory in these predictive markets."
