Torres puts pressure on the SEC over Trump Media Truth API, sparking the latest Democratic ethical d

Rep. Richie Torres asked the SEC to investigate whether Trump Media's new API is illegal.

Rep. Richie Torres, D-New York, has written to the U.S. Securities and Exchange Commission asking it to investigate whether Trump Media and Technology Group's new "real API" violates federal securities laws. The product plans to provide Wall Street companies with faster access to President Trump's "real social" posts starting August 1.

Can the President monetize access to his social media posts? In his letter, Torres asked SEC Chairman Paul Atkins to investigate whether the new API, which provides Wall Street companies with faster access to the president's posts, was illegal. Torres questioned Treasury Secretary Scott Bessant about tariffs and Fed independence at a February hearing, and in March accused the president of illegal launching a strike on Iran without congressional approval. Today, Torres believes that because Trump still holds about 41% of Trump Media through a revocable trust, he should not charge traders for market-influencing remarks to provide a speed advantage. He wrote that this is "fundamentally different" from the way ordinary platforms sell access to their information streams.

The letter asked Atkins to determine whether the API's structure and marketing violated federal securities laws, market manipulation rules, or brokerage obligations. Torres also urged the agency to coordinate with the Commodity Futures Trading Commission and the Office of Government Ethics and clarify whether a review has been initiated. Senate Minority Leader Chuck Schumer called the product a form of insider trading, while Republican Senator John Thern of South Dakota and Majority Leader said the product "breaks new ground" in the prediction market.

How does the "real API" work?

Trump Media announced the API service last week, saying it pushed posts from the 10 most popular accounts on "Real Social" in real time, including Trump, the White House, FBI Director Cash Patel and Secretary of Health and Human Services Robert F. Kennedy Jr. The company has reportedly discussed licensing fees of up to $100,000 per month, with a discounted price of $60,000 per month for three-year plans. Customers who are willing to pay extra can also get posts from more accounts. Company interim CEO Kevin McGahn promoted the authorization as a stable and highly profitable source of revenue. He also pointed out that financial markets were inherently volatile based on the president's post, but failed to acknowledge that the product would give wealthy institutions a speed advantage over retail investors. A spokesman for Trump Media (Nasdaq: DJT) also defended the service, calling it "the fastest way to obtain publicly available 'real social' data."

What is hindering the Clarification Act?

President Trump's financial interests, especially his involvement in cryptocurrencies, have been seen as controversial, and the controversy has become even more noteworthy since Trump disclosed nearly $1.4 billion in crypto-related revenue in 2025. Democrats reportedly refused to support the Clarification Act, although the bill faces an August deadline unless it includes ethics provisions covering how officials can profit from digital assets while in office. There were also reports that four Democrats, including Senator Elizabeth Warren, requested a hearing in June on a US$500 million investment related to the United Arab Emirates that pointed to the Trump family's crypto project "World Free Finance." The White House has agreed to add some ethics provisions to the crypto bill, including prohibiting federal officials from issuing digital assets. But Democrats worry that the main law enforcement agency will be the Justice Department, not the state attorneys general. Senator Angela Assobrooks, D-Maryland and the bill's negotiator, called the Justice Department's enforcement proposals "not serious." At the same time, the White House accused Democrats of possibly blocking the bill's passage.