Warren, Schiff urge SEC to probe Trump Media's paid service giving faster access to Trump's posts
Trump has frequently posted policy announcements or other newsworthy information on Truth Social that have sent global markets hurtling up or down.
Senators Elizabeth Warren and Adam Schiff are calling on the Securities and Exchange Commission to investigate Trump Media's paid service that gives users faster access to posts from former President Donald Trump. This service may have provided some investors with an unfair advantage, as Trump's posts on Truth Social have been known to cause significant market fluctuations.
The potential for insider trading or market manipulation is a concern, given the significant impact Trump's posts have had on global markets. As a publicly traded company, Trump Media is subject to SEC regulations, which prohibit insider trading and require disclosure of material information. If the SEC finds that Trump Media's paid service did provide preferential access to Trump's posts, it could be a violation of these regulations.
Market participants should watch for any updates on the SEC's investigation and any potential actions taken against Trump Media. Additionally, investors should be aware of the potential for market volatility driven by Trump's social media activity and consider this risk when making investment decisions. The SEC's response to this request will be an important indicator of how regulators plan to address potential market manipulation and insider trading risks associated with social media influencers and paid services.
Originally reported by cnbc.com. Trade-News adds analysis for finance & markets readers.