A group of Democratic lawmakers is calling on the Securities and Exchange Commission (SEC) to investigate “potential violations” of federal securities laws by U.S. President Donald Trump or members of his inner circle.
In a letter released on Friday, they asked the independent government agency to investigate “whether President Trump, any members of his cabinet, or other donor, insiders, and Administration officials engaged in insider trading, market manipulation, or other securities laws violations on April 9, 2025.”
Senators Elizabeth Warren, Chuck Schumer, Ruben Gallego, Mark Kelly, Adam Schiff and Ron Wyden signed the letter.
A days-long downward spiral on stock markets ended on Wednesday, when Trump suddenly announced a 90-day pause on some hefty global “reciprocal” tariffs first announced last week.
Stocks soared on the news, with the S&P 500 closing up 9.5 per cent by the end of trading that day, and the Nasdaq Composite closing up 12.2 per cent. The market, measured by the S&P 500, gained back about $4 trillion, or 70 per cent, of the value it had lost over the previous four trading days following Trump’s tariff announcement.
Only hours before the pause was announced, however, the president had told his followers on his Truth Social site to invest in the stock market.
“THIS IS A GREAT TIME TO BUY!!! DJT,” Trump wrote at 9:37 a.m.
Stock markets closed sharply down Thursday after U.S. President Donald Trump clarified a combined tariff rate of 145 per cent against China. The constant chaos has infuriated Beijing and prompted more accusations of intentional market manipulation.
Trump’s social media post raises questions
The timing of Trump’s posts in relation to the tariff pause announcement is what’s raising questions for the group of Democrats, according to the letter.
“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,” it reads in part.
When asked to comment, White House spokesperson Kush Desai wrote in an email to CBC News: “It is the responsibility of the President of the United States to reassure the markets and Americans about their economic security in the face of nonstop media fear mongering. Democrats railed against China’s cheating for decades, and now they’re playing partisan games instead of celebrating President Trump’s decisive action yesterday to finally corner China.”
David Chase, who once worked as an enforcement attorney with the SEC, said in general, the stock market’s extreme highs and lows over the past week don’t mean anything illegal is going on behind the scenes.
“Market volatility does not necessarily mean … that there is manipulation,” Chase, who now represents SEC whistleblowers, told CBC News. “It very well may mean that the markets are working efficiently and…
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