In a significant move, a coalition of retail investors has officially urged President Donald Trump to take decisive action against naked short selling and other fraudulent trading practices by having the DOJ investigate regulatory bodies.
In a formal letter addressed to the president, these investors are calling for comprehensive investigations and legislative reforms to ensure a fair and equitable trading environment for all participants in the financial markets, particularly within the SEC and FINRA.
A Call for Action
The letter outlines three key demands aimed at addressing the rampant issues of market manipulation:
- Direct the DOJ to Launch a Comprehensive Investigation
The investors are urging President Trump to instruct the Department of Justice (DOJ) to initiate a thorough investigation into fraudulent trading practices, including naked short selling. They emphasize the need to investigate the regulatory failures that have allowed such practices to proliferate, harming retail investors and undermining market integrity. - Empower the Department of Government Efficiency (DOGE)
The letter advocates for empowering the Department of Government Efficiency (DOGE) to conduct an audit of the Securities and Exchange Commission (SEC) and FINRA. This audit would scrutinize internal practices, identify conflicts of interest, and assess regulatory failures. Retail investors have commended DOGE for its commitment to rooting out corruption within government agencies, viewing it as a necessary step to restore trust in regulatory bodies. - Lead Legislative Reform
Finally, the investors are calling on Trump to spearhead legislative reforms aimed at eliminating market manipulation tactics. They argue that such reforms are essential to creating a level playing field for all investors, ensuring that retail participants are no longer at a disadvantage against larger financial institutions.
Learning from Global Practices
The urgency behind this letter is amplified by comparisons to regulatory practices in other countries.
In South Korea, for instance, authorities take naked short selling much more seriously than in the United States.
In some instances, short sellers are even facing life in prison for manipulating the markets.
The South Korean regulatory framework is designed to prevent such manipulative practices, offering a model that the U.S. could emulate.
Retail investors believe that adopting similar stringent measures could help protect American investors from the adverse effects of market manipulation.
Related: A publicly traded company now speaks out on naked short selling attacks
A Unified Voice for Change
This collective effort by retail investors underscores a growing sentiment that the U.S. financial system requires reform.
As they rally for action, these investors are not only seeking to address immediate concerns regarding naked short selling but are also advocating for broader changes that ensure accountability and transparency within financial markets.
By calling on President Trump to take a stand against these practices, retail investors are hopeful that their voices will be heard and that meaningful change will follow.
The outcome of this initiative could set a precedent for how market manipulation is addressed in the future, potentially reshaping the landscape of American investing for years to come.
Investors can also contact the Department of Justice regarding market integrity and fraud here.
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