US Democratic Congressman Rich Torres from New York has requested the Securities and Exchange Commission (SEC) to investigate whether Truth Social's paid API service plan violates federal securities law. Axios reported that it obtained a copy of the letter Torres sent to the SEC. Last week, reports emerged that Trump Media & Technology Group (TMTG) proposed fees of up to $100,000 to potential buyers of its 'Truth API' data service. Torres raised concerns that the pricing structure could give institutional investors unfair advantages in accessing market-moving presidential announcements, as Trump—who has 12.9 million followers on Truth Social—has consistently used the platform to announce major policy decisions that trigger significant volatility across global markets since taking office.
Torres Requests SEC Review Before Official API Launch
In the letter, Torres urged SEC Chair Paul Atkins to review the Truth API before its official launch and determine whether it raises concerns related to securities law, market manipulation, or investor protection. Torres noted that the president continues to hold approximately 41% of the company's shares through a revocable trust.
Congressman Highlights Differences Between General Data Sales and Presidential Communications
Torres pointed out a fundamental difference between social media platforms selling general data for a fee and a company substantially owned by a sitting president selling rapid access to policy announcements that trigger market volatility to institutional investors. Torres emphasized that presidential communications affecting stocks, bonds, oil, currencies, and other assets should not become premium financial products that give wealthy institutions a millisecond advantage over individual investors.
Torres added that even very short informational advantages can generate substantial profits in algorithmic markets and undermine trust in a fair and level playing field. He requested that the SEC coordinate with other federal agencies including the Commodity Futures Trading Commission (CFTC) and the Office of Government Ethics.
TMTG Spokesperson Describes API as Fastest Data Collection Method
A TMTG spokesperson told Axios that "Truth API provides customers with the fastest way to collect available Truth Social data."
FAQ
What did Congressman Rich Torres request from the SEC?
Torres requested the SEC to investigate whether Truth Social's paid API service plan violates federal securities law and to review the service before its official launch for concerns related to securities law, market manipulation, or investor protection.
How much does TMTG's Truth API data service cost?
Last week, reports indicated that Trump Media & Technology Group proposed fees of up to $100,000 to potential buyers of the Truth API data service.
What ownership stake does Trump hold in TMTG?
Torres noted in his letter that the president continues to hold approximately 41% of the company's shares through a revocable trust.
