WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA), a senior member of the Committee on Banking, Housing, and Urban Affairs, introduced the No Preferential Release of Federal Information for Transactions (NO PROFIT) Act, legislation that would make it illegal for social media companies to sell prioritized access to government employees’ accounts that communicate material information. Furthermore, this legislation would make it illegal for a person to knowingly trade in securities, commodities, swaps, or prediction market contracts if the person is doing so on the basis of material information obtained through access to a prioritized account. This bill is a direct result of Truth API, Truth Social’s subscription service for advance access to the president’s posts, going live over the weekend.
“The president’s company selling prioritized access to the president’s market-moving posts is corrupt and erodes public confidence,” said Sen. Warner. “Americans should have free and equal access to public statements made by U.S. government officials. My bill would make sure social media companies can’t sell prioritized access to government employees’ accounts and that someone can’t knowingly trade with information obtained through access to those accounts. Early access to government information should not be sold to whoever will pay the price.”
Last month, Sen. Warner sent a letter to representatives of the financial services industry explaining his concerns with the Truth API announcement and urged them to make clear that the member firms will have no part in this arrangement.
Full text of the bill can be found here. The one pager and section-by-section can be found here.
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