Democrats ask SEC to probe stock market manipulation

A group of Senate Democrats on Friday asked the Securities and Exchange Commission to investigate President Donald Trump and others for “potential violations of securities law” related to the president’s announcement this week of a pause in so-called reciprocal tariffs on imports from many countries.

“Specifically, we ask the SEC to determine 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, when President Trump announced that it was a “GREAT TIME TO BUY” into the stock market,” the Democrats said in a letter.

“President Trump’s statement came just hours before he announced a 90-day pause on his recently-announced tariffs, leading to a historic market rally after days of dramatic market declines,” the letter said.

The letter was signed Senate Minority Leader Chuck Schumer of New York, Sen. Elizabeth Warren of Massachusetts, Arizona Sens. Mark Kelly and Ruben Gallego, as well as Sen. Adam Schiff of California and Oregon Sen. Ron Wyden.

An SEC spokesperson declined to comment.

CNBC has requested comment from the White House on the letter.

On Thursday, White House spokesman Kush Desai dismissed comments from Schiff and other Democrats raising concerns about possible insider trading related to Trump’s pause.

“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 fearmongering,” Desai said in a statement.

“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,” he said.

This is developing news. Check back for updates.