Senate Democrats Urge SEC Probe of Possible Trump Market Manipulation, Insider Trading
"Did President Trump tip off big donors or family to cash in on his tariff chaos?" asked Sen. Elizabeth Warren.
Amid mounting concerns over possible stock market manipulation by President Donald Trump and members of his inner circle, Democrats in the U.S Senate on Friday joined their House colleagues in urging the Securities and Exchange Commission to investigate potential insider trading and other violations related to the chaos caused by the administration's mercurial global trade war.
After slapping sweeping tariffs of 10% or more on almost every country in the world last week, Trump abruptly paused some of the levies for most nations. These moves prompted a stock market plunge, followed by a robust rally that saw over $5 trillion in value added to the market in just hours on Wednesday—a day the president proclaimed that "this is a great time to buy" stocks and openly boasted about enriching his billionaire buddies.
"In any administration this corrupt it is more than necessary to ask, were people personally profiting from insider information?"
According to a Bloomberg estimate, Wednesday's bounceback bonanza added $304 billion to the collective wealth of the world's top billionaires, with Elon Musk, the world's richest person and the de facto head of the Trump administration's Department of Government Efficiency, adding an estimated $36 billion, or about 10%, to his net worth.
"We urge the SEC to investigate whether the tariff announcements, which caused the market crash and subsequent partial recovery, enriched administration insiders and friends at the expense of the American public, and whether any insiders, including the president's family, had prior knowledge of the tariff pause that they abused to make stock trades ahead of the president's announcement," six Democratic senators—Minority Leader Chuck Schumer (N.Y.), Elizabeth Warren (Mass.), Mark Kelly (Ariz.), Ruben Gallego (Ariz.), Adam Schiff (Calif.), and Ron Wyden (Ore.)—wrote Friday in a letter to SEC Chair Paul Atkins.
Did President Trump tip off big donors or family to cash in on his tariff chaos? Today with @schumer.senate.gov and Senate Democrats, I officially called for an SEC investigation to find out. Presidents are not kings.
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— Elizabeth Warren (@warren.senate.gov) April 11, 2025 at 6:08 AM
"It is unconscionable that as American families are concerned about their financial security during this economic crisis entirely manufactured by the president, insiders may have actively profited from the market volatility and potentially perpetrated financial fraud on the American public," the senators continued. "At this critical moment, the SEC must do its part to restore Americans' faith in the rule of law and to preserve the integrity of the financial system, in accordance with its statutory mission."
In a video posted on social media Wednesday, Schiff asked, "The question is, who knew what the president was going to do, and did people around the president trade stock knowing the incredible gyration the market was about to go through?"
"This is a president who is trading in his own meme coin even as he's president, his kids are trading in their own cryptocurrency, you've got people like Elon Musk who are doing their own conflicted self-dealing in the administration, and in any administration this corrupt it is more than necessary to ask, were people personally profiting from insider information while peoples' savings, their retirement accounts, are being torched," he added.
"The American people deserve to know if any representatives took advantage of their positions for personal gain."
The senators' letter follows a similar missive led by House Financial Services Committee Ranking Member Maxine Waters (D-Calif.) and sent to Atkins, SEC Inspector General Deborah Jeffrey, and U.S. Comptroller General Gene Dodaro on Thursday requesting an "immediate" investigation into "possible insider trading and market manipulation violations that took place between Sunday, April 6, 2025, when U.S. Treasury Secretary Scott Bessent visited President Trump at his Florida resort, and Wednesday, April 9, 2025, when the president announced the pausing of the tariffs—and whether such unlawful activities are ongoing."
"Insider trading by federal officials and their friends or family is not only a breach of trust of the American people, but erodes the integrity of government institutions and raises concerns about corruption and fairness in the political system," the letter states. "There should be zero tolerance for this kind of corruption in our society, let alone from those we entrust to lead us in the public sphere."
In yet another letter sent on Thursday, six Democratic representatives—Joe Neguse (Colo), Alexandria Ocasio-Cortez (N.Y.), Seth Magaziner (R.I.), Mike Levin (Calif.), Dave Min (Calif.), and Steven Horsford (Nev.)—asked House Speaker Mike Johnson (R-La.) to "call on every member of the House of Representatives to immediately file and release their periodic trading reports for any transactions conducted between April 2, 2025 and April 9, 2025."
"The American people deserve to know if any representatives took advantage of their positions for personal gain," the letter states.
Ocasio-Cortez (D-N.Y.) said during an interview with Spectrum News NY1 that "I don't think that Trump just coincidentally said buy stocks and then shortly later made an announcement that dramatically inflated and dramatically raised a lot of these asset prices."
"I do not care if you're a Democrat, I do not care if you're a Republican: If you are trading individual stock when the market is being manipulated in this way, you need to answer for it," Ocasio-Cortez added.
On Wednesday, Rep. Greg Casar (D-Texas) also called for a probe of Rep. Marjorie Taylor Greene's (R-Ga.) stock purchases during this week's market drop, and "whether any K Street lobbyists or other big firms were tipped off by Donald Trump's actions."
In an interview with Meidas Touch published Friday, Casar said that "it's just remarkable how much a culture of corruption has completely infected and taken over the entire Republican Party."
Casar: At the end of the day, this is about taking your hard-earned money and giving it to themselves—or funneling it to their friends. That’s all this is about.
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— Acyn ( @acyn.bsky.social) April 11, 2025 at 9:23 AM
"This is all part of the same story. They crash the market and then open it up to insider trading so that... members of Congress, K Street lobbyists, the billionaire donor buddies of Donald Trump can cash in after everybody's retirement accounts got screwed over," Casar continued.
"At the end of the day," he added, "this is all about basically taking your hard-earned money and giving it to themselves or funneling it to their buddies."
