The rollout has drawn immediate criticism from ethics experts and Democratic lawmakers urging a securities investigation.
Truth API Launch Gives High-Frequency Traders a Speed Advantage
Wall Street trading firms can now receive alerts for market-moving social media posts faster than the general public. The subscription service provides institutional customers with a direct feed of posts from the platform’s most influential accounts.
Although the platform’s public announcement did not explicitly name the president, The Guardian noted that the @realDonaldTrump account is by far the largest on the network.
“Markets already move on Truth Social posts, Truth API delivers a direct, licensed, real-time feed of the platform’s most market-moving Truths while advancing our strategy to monetize proprietary assets through a high-margin, recurring revenue stream.”
Kevin McGurn, interim CEO of Trump Media
Trump Media has not publicly disclosed the exact pricing for every client. However, Reuters reported that the company discussed charging up to $100,000 a month, or $60,000 a month as part of a three-year plan.
Democratic Lawmakers Press the SEC for a Federal Investigation
The new product has triggered immediate regulatory scrutiny. Days before the commercial launch, Democratic Senators Elizabeth Warren of Massachusetts and Adam Schiff of California sent a letter to Securities and Exchange Commission Chairman Paul Atkins, urging the federal agency to examine whether the data feed breaks the law.
The lawmakers wrote in their July 28 letter that the offering represents an abuse of executive office for private financial gain.
“This appears to be an outrageous abuse of the President’s office for his personal benefit that undermines everyday investors and the integrity of our markets, while enriching Wall Street and other wealthy insiders.”
Senators Elizabeth Warren and Adam Schiff
An SEC spokesperson confirmed receiving the letter from the senators but declined to comment further, according to Reuters. Meanwhile, a spokesperson for Trump Media defended the product by criticizing the political backlash. The company stated that critics were mischaracterizing the service due to ideological opposition to free markets or a fundamental misunderstanding of public versus nonpublic information.
Financial Analysts and Market Experts Debate the Ethics and Utility
Financial analysts, legal commentators, and market participants expressed starkly different views on the value and legality of the new data feed.
Other financial professionals questioned whether the feed offers a genuine trading edge.
Legal and ethical concerns, however, remain central to the debate. James Surowiecki argued on social media that selling advance notice of government policy statements violates insider trading principles, stating that information regarding future public statements belongs to the public rather than private monetization channels.
Financial Disclosures and Shareholder Stakes
The commercial rollout arrives as the parent company navigates a challenging financial climate. President Trump holds a major stake in the company, owning 114.75 million shares representing 41% of the firm through a trust overseen by his children, according to financial disclosures cited by nbcnews.com.
While the company has historically relied on advertising revenue, executives hope the new recurring revenue stream will help stabilize its financial footing despite mounting regulatory scrutiny.
Worth a look