SEC Chair Gensler avoids answering questions about Trump Media’s campaign finance practices

U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler faced tough questions on Tuesday regarding Trump Media and its potential ties to former President Donald Trump’s presidential campaign. Gensler refused to comment on speculation that Trump Media could be a funding source for Trump’s bid for a second term.

“What’s important is that their disclosures are accurate and that folks aren’t in the market front-running or trading on insider information,” Gensler stated during an interview on CNBC’s “Squawk Box.”

Since Trump Media’s stock, traded under the ticker symbol DJT, went public on the Nasdaq, it has experienced significant volatility. The stock opened Tuesday at around $49 per share, with highs near $80 and lows around $12. As the majority shareholder, Trump could potentially benefit the most from DJT’s performance.

Despite the stock’s fluctuations, Trump is currently unable to cash in on his shares due to a standard lock-up provision that requires him to wait six months before selling or trading any shares. However, with a paper value of over $5 billion at Tuesday’s market open, Trump stands to gain substantially once the lock-up period expires.

The uncertainty surrounding Trump Media’s stock behavior has raised concerns about potential market manipulation. Trump Media CEO Devin Nunes has suggested that the stock’s rapid falls may be linked to “naked” short selling, a controversial trading practice.

Gensler emphasized the importance of accurate disclosures and individual research in the capital markets, highlighting the need for transparency and integrity in financial dealings. As the SEC continues to monitor the situation, the future of Trump Media and its impact on Trump’s political ambitions remain uncertain.