WASHINGTON: The Trump Media & Technology Group (TMTG) is facing criticism after launching a paid service that gives Wall Street firms split-second early access to posts from influential Truth Social accounts, raising concerns about potential market manipulation and conflicts of interest.
The service, known as Truth API, delivers posts from the platform’s most-followed accounts to institutional clients within milliseconds. While TMTG has not confirmed whether President Donald Trump’s account is included, his profile is the platform’s most-followed and widely regarded as the most influential in moving financial markets.
The service began rolling out to institutional customers on August 1. According to reports, subscriptions could cost up to $100,000 per month, although the company has not confirmed the pricing. TMTG hopes the product will provide a new source of revenue.
The company said the service is designed for high-frequency and algorithmic trading firms, which rely on automated systems to execute trades within fractions of a second.
The launch has prompted concerns over possible insider trading, with critics arguing that early access to posts related to government policy could provide an unfair market advantage.
Richard Painter, who served as chief ethics lawyer under former President George W. Bush, told the BBC that even if Trump does not personally trade on the information, so-called “tipper-tippee” liability could apply if government information is provided to parties likely to use it for financial gain.
He said the concern would apply to posts involving issues such as tariffs, wars or other government policies, and argued that securities regulators should either block the service or exclude posts related to official government business.
Democratic Senators Elizabeth Warren and Adam Schiff have asked the US Securities and Exchange Commission to examine whether the service violates securities laws, calling it an abuse of the presidency that benefits Wall Street insiders while disadvantaging ordinary investors and undermining market integrity.
The SEC acknowledged receiving the letter but declined to comment on whether it would open an investigation.
TMTG dismissed the allegations, saying the senators either oppose free markets or misunderstand the distinction between public and non-public information. The company argued that the service is based solely on information that is already public.
Trump owns approximately 41 per cent of Trump Media through a trust managed by his children, meaning he could benefit financially from the company’s success.
Joe Saluzzi, co-founder of Themis Trading, noted that similar data services are already offered by news organisations, stock exchanges and other data providers, but said the ethical questions surrounding TMTG’s offering remain separate from its legality.
