Experts warn Trump’s paid post feed makes markets “look rigged”
Investors who conclude the system is rigged “might move their capital elsewhere,” Jones told Fortune, and Gellasch said he expects attention to drift toward markets with tougher disclosure rules, “particularly European markets.”
Chester Spatt, a Carnegie Mellon professor and former SEC chief economist, argued the core problem is not that faster access exists, since terminals such as Bloomberg‘s already sell speed, but that a company controlled by the sitting president collects the fees.
Retail investors stand to lose the clearest edge, advocates for small traders told CNBC, warning the feed widens the information gap just as individuals have become a larger market force.
The dispute plays out under US law and before the US regulator, but the exposure travels north: Canadian portfolios holding US-listed equities react to the same posts, and the same asymmetry, whenever Trump moves a market from his account.
Democratic senators Elizabeth Warren and Adam Schiff asked the SEC in late July to examine whether the feed undermines market integrity, according to Reuters, and Representative Ritchie Torres has pressed the commission to weigh whether it implicates securities law, market-manipulation protections, and broker-dealer duties, per his office.
