Sen. Elizabeth Warren (D-Mass.) raised concerns over President Donald Trump‘s new Truth Social premium data service during a congressional hearing Thursday, questioning whether allowing Wall Street firms to pay for faster access to presidential posts undermines market integrity.
Congressional Hearing Puts Truth API Under Spotlight
Sharing a video from the hearing on X, Warren said, “while Republicans ignore Trump’s corruption, see what bipartisan market experts think about it.”
During the hearing, Warren highlighted Trump Media & Technology Group Corp.‘s (NASDAQ:DJT) Truth API and questioned whether allowing Wall Street firms to pay up to $100,000 a month for faster access to presidential posts affecting the economy and foreign policy strengthened U.S. capital markets.
She asked the floor to raise their hands if they believed the arrangement was “good for the integrity of our capital markets.”
None did.
“We all know that this is wrong,” Warren said. “Maybe if the Republicans on this committee want to strengthen the capital markets, we can start by outlawing what President Trump is doing.”
Service Gives High-Speed Traders An Edge
University of Michigan economist Justin Wolfers criticized the service as it gives institutional investors an opportunity to receive market-moving presidential posts before the broader public.
Wolfers in a blog said the primary customers are likely to be high-frequency trading firms, whose algorithms can process new information and execute trades within fractions of a second.
He added that even a one-second head start could provide a meaningful trading advantage in financial markets.
“It’s hard to imagine a clearer conflict of interest,” the economist said as Trump’s owns roughly 41% of Trump Media through a revocable trust.
Truth API Faces Growing Political Scrutiny
Earlier this month, Warren and Sen. Adam Schiff (D-Calif.) asked the Securities and Exchange Commission to investigate whether the service violates federal securities laws.
Senate Minority Leader Chuck Schumer (D-N.Y.) said a private company CEO offering similar access could face legal consequences, while investor Jason Calacanis called it “a very dumb idea.”
The president frequently uses Truth Social to announce policy and geopolitical developments that move markets.
Price Action: Shares of Trump Media & Technology Group closed 0.70% lower on Thursday at $9.89 and fell further 0.10% in extended trading.
According to Benzinga edge rankings, DJT ranks in the 10th percentile for Momentum, with positive short and medium-term price trends and a negative long-term trend.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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