Rep. Torres urges SEC probe of Truth Social's real-time data sales
Rep. Torres formally requested the SEC investigate Truth Social's paid real-time data access plan.
Why it matters: This inquiry highlights potential securities law violations and ethical concerns about monetizing presidential social media content, crucial for legal teams overseeing compliance and securities regulation.
- Rep. Ritchie Torres asked the SEC on July 21, 2026, to investigate Truth Social's sale of accelerated data access.
- Truth Social's parent, Trump Media & Technology Group (TMTG), plans to launch the 'Truth API' on August 1, 2026, offering paid, expedited access to posts from the top 10 trending accounts, including President Trump's.
- Kathleen Clark, Washington University law professor, said selling privileged access to presidential posts raises conflict of interest and ethics concerns.
- TMTG has reported $406 million in losses and an 84% stock price drop since its 2024 public listing, indicating financial pressures behind the move.
On July 21, 2026, Rep. Ritchie Torres (D-N.Y.) called on the Securities and Exchange Commission (SEC) to probe Trump Media & Technology Group's (TMTG) plan to monetize real-time social media data from its platform, Truth Social.
TMTG intends to launch the "Truth API" on August 1, 2026, a paid service providing subscribers with expedited, real-time feeds from the top 10 trending accounts, including posts from former President Donald Trump. Interim CEO Kevin McGurn highlighted the financial significance, stating, "Markets already move on Truth Social posts," implying this data could influence trading.
Legal ethics issues have surfaced. Kathleen Clark, a government conflicts of interest law professor at Washington University, labeled the initiative as problematic, saying, "He's selling expedited, privileged access to information about what he is doing as president." Such commercialization may breach conflict of interest norms and ethical boundaries surrounding presidential communications.
TMTG is facing substantial financial challenges. According to The Daily Beast, the company reported $406 million in losses and saw its stock tumbling 84% since its 2024 public debut. Analysts suggest this monetization effort attempts to generate revenue amid a deteriorating financial position.
By requesting an SEC investigation, Rep. Torres is spotlighting the intersection of securities law, social media data monetization, and presidential ethics. The inquiry could set precedents on regulating paid access to politically charged social media content and hold platforms accountable under securities regulations.
By the numbers:
- $406 million — TMTG reported losses as of July 2026
- 84% — Drop in TMTG stock value since 2024 public listing
- August 1, 2026 — Scheduled launch date for Truth Social's 'Truth API'
Yes, but: Some argue that real-time access to public social media data is common in financial markets and does not necessarily violate securities laws; the SEC's investigation will clarify legal boundaries.
What's next: The SEC's decision to open a formal investigation will be critical. Any enforcement actions or guidance issued will impact social media platforms' data monetization practices and compliance frameworks.