Democrats urge SEC to investigate supposed Trump insider trading

Senate Minority Leader Chuck Schumer and Senator Elizabeth Warren recently requested that the Securities and Exchange Commission (SEC) investigate President Trump’s social media posts promoting stock market purchases before announcing a tariff pause, causing the market to surge. In a joint letter, the senators called for an inquiry into potential insider trading or market manipulation by Trump, his cabinet members, donors, and administration officials.

The letter, also signed by Sens. Adam Schiff, Ron Wyden, Mark Kelly, and Ruben Gallego, accused Trump of encouraging his followers to invest in stocks just before his announcement of a 90-day pause on tariff increases for 75 countries and higher levies on China. Trump’s tweet on Truth Social, stating “THIS IS A GREAT TIME TO BUY!!!”, preceded the market rally triggered by his tariff decision.

The senators highlighted concerns about individuals with advance knowledge of Trump’s tariff pause plans potentially exploiting the information for personal gain. They directed the letter to SEC Commissioner Paul Atkins, a Trump appointee, seeking an investigation into whether any government officials or affiliates were involved in securities laws violations on April 9, 2025.

The senators emphasized the significance of determining whether Trump administration insiders were aware of the impending tariff pause and consequent market rally. They stressed the need for transparency and accountability in ensuring fair and ethical trading practices within the government.

The SEC inquiry aims to scrutinize the circumstances surrounding Trump’s stock market recommendation and the subsequent market reaction to assess any wrongdoing or breaches of securities regulations by individuals associated with the government. This initiative underscores the lawmakers’ commitment to upholding integrity and honesty in financial transactions, particularly involving public officials.

By calling for a thorough investigation into potential insider trading by Trump and his associates, the senators seek to uphold the integrity of the financial markets and prevent misconduct that could compromise investor confidence. The inquiry reflects a broader effort to promote accountability and ethical conduct among government officials, emphasizing the importance of upholding financial regulations and fair trading practices.