Trump Media & Technology Group (TMTG) has introduced a new service, Truth API, designed to provide institutional investors and high-frequency trading firms with near-instantaneous access to influential posts on the Truth Social platform. By delivering data in milliseconds, the company aims to create a new revenue stream for the currently loss-making firm.

While TMTG has not explicitly confirmed that the account of the US president is included in the feed, his status as the platform's most followed user has fueled concerns regarding the intersection of public policy and private profit. The service, which reportedly carries a monthly fee that could reach $100,000, is specifically targeted at algorithmic trading firms that rely on speed to capitalize on market-moving information.

The initiative has drawn sharp criticism from political figures, including Democratic Senators Elizabeth Warren and Adam Schiff, who have urged the Securities and Exchange Commission (SEC) to investigate potential legal violations. Critics argue that the service could facilitate insider trading if the president’s posts regarding government policy are sold to traders before reaching the general public. Richard Painter, a former chief ethics lawyer for the George W. Bush administration, noted that under "tipper-tippee liability," providing non-public government information for profit could violate insider trading laws.

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TMTG has dismissed these allegations, characterizing the criticism as a misunderstanding of the difference between public and non-public information. A company spokesperson stated that the senators are attempting to invent a new theory of insider trading based on data that is technically available to the public. Meanwhile, industry experts point out that while similar data services exist elsewhere in the financial sector, the unique position of the president—who holds a significant stake in TMTG through a family-overseen trust—raises distinct ethical questions about the potential abuse of office for personal financial gain.

Major investment banks and trading firms have remained silent regarding their participation in the service, and the White House has declined to comment on the matter. The SEC has confirmed it received the letter from the senators but has not stated whether an investigation will be launched.

Source: BBC News