WASHINGTON, 12 April 2025 (BSS/AFP) – A group of senior Democratic US senators has formally requested that the Securities and Exchange Commission (SEC) investigate whether President Donald Trump or individuals close to him violated securities laws following a sudden policy shift that sparked a dramatic stock market rally.
Sudden Reversal Raises Eyebrows
The concern stems from a sequence of events on Wednesday morning. President Trump posted a message on his social media platform, Truth Social, stating:
“THIS IS A GREAT TIME TO BUY!!!”
This came at a time when stock markets were plunging in anticipation of a fresh round of global tariffs. However, just hours later, Trump announced a 90-day suspension of these tariffs for dozens of countries. The reversal triggered a record-breaking rebound on Wall Street, with the S&P 500 posting its best performance since the aftermath of the 2008 financial crisis.
The same day, Trump appeared in a White House video celebrating the financial gains of his wealthy allies. In one clip, he pointed to billionaire investor Charles Schwab, claiming Schwab had made $2.5 billion, and then highlighted NASCAR team owner Roger Penske, reportedly stating he had made $900 million.
Senators Demand Inquiry
The call for an investigation was led by Senator Elizabeth Warren of Massachusetts and included five other prominent Democrats. Their formal letter to the SEC asked for a thorough probe into:
Potential insider trading
Market manipulation
Abuse of confidential policy knowledge for financial gain
They also questioned whether members of Trump’s family, donors, or business allies were tipped off in advance about the policy shift, enabling them to buy stocks before the markets surged.
A particular focus has been placed on Trump Media & Technology Group, the parent company of Truth Social, which saw its shares rise by 21.67% on the day of the announcement.
Timeline of Key Events
| Date & Time | Event | Market Impact |
|---|---|---|
| Morning, Wed 9 April | Trump posts “GREAT TIME TO BUY!!!” | Stocks near weekly low |
| Midday | Trump announces 90-day tariff pause | Stock surge begins |
| Closing Bell | S&P 500 posts record single-day gain | +4.9% overall |
| Evening | White House releases video of Trump celebrating friends’ profits | Public scrutiny increases |
Wider Political Concerns
Beyond securities law, the controversy touches on broader anxieties over potential corruption and the monetisation of the presidency. Senate Minority Leader Chuck Schumer declared:
“Corruption and lawlessness have become a calling card of the Trump administration.”
This letter to the SEC was followed by a second letter addressed to the National Association of Attorneys General (NAAG), encouraging state-level investigations where possible.
Trump’s Digital Dealings Add Fuel to Fire
The request also comes in the wake of another controversy — the launch of a Trump-branded ‘memecoin’, a cryptocurrency token introduced just days before his inauguration. Critics warn that such financial instruments could be used for anonymous foreign donations, creating ethical and security concerns.
Former Trump aide Anthony Scaramucci commented:
“Every favour — geopolitical, corporate or personal — is now on sale, right out in the open.”
White House Response
In defence of the President, a White House spokesperson told The Washington Post that Trump’s post was merely an attempt to “reassure markets and the American public” during a time of economic uncertainty.
SEC Chairman Paul Atkins, who has faced prior criticism from Senator Warren over alleged industry ties, is under no obligation to act but is expected to face mounting pressure in the coming days.