Trump Media Sells Wall Street Early Access to Truth Social Posts

Trump Media & Technology Group (TMTG), the company behind President Donald Trump's social media platform Truth Social, has proposed charging Wall Street firms up to $100,000 per month for faster access to its posts. According to sources familiar with the matter reported by HuffPost and Reuters, TMTG is pitching a discounted plan of $60,000 per month if firms sign up for a three-year commitment.

The service, called Truth API or Truth PSI, will provide real-time access to posts from the 10 most influential accounts on Truth Social. These include President Trump himself and those closely aligned with him, such as his sons Donald Trump Jr. and Eric Trump, as well as prominent supporters like Dan Bongino and Sean Hannity.

TMTG unveiled the paid-for, licensed data feed last week but did not provide any pricing details at that time. The move is seen as a new revenue stream for TMTG, which has faced challenges in scaling its media business amid intense competition from larger social media firms and significant financial struggles.

According to Time, Trump Media's interim CEO Kevin McGurn described the Truth API as part of a strategy to monetize proprietary assets. He expects it to become a meaningful ongoing source of revenue, although analysts note that its value may diminish as Trump's time in office is limited.

The arrangement has drawn immediate criticism from Democrats. Senator Ron Wyden of Oregon, the highest-ranking Democrat on the Senate Finance Committee, said it would financially benefit the Trump family and make Wall Street traders rich. According to CBS News, McGurn stated that markets already move on Truth Social posts and emphasized the importance of fast access for firms impacted by information delays.

The Donald J. Trump Revocable Trust holds roughly 114.75 million shares, representing about 41% of all outstanding stock in TMTG, according to regulatory filings reported by Reuters. The trust administers Trump's investments and is overseen by his children.

The Truth API arrangement has been described as widely unethical. Donald Sherman, president of the nonpartisan watchdog group Citizens for Responsibility and Ethics in Washington, said it would be difficult to determine from publicly available information whether it is illegal. According to Time, Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, called it an egregious scheme to profit off the presidency.

The White House referred questions on Wyden's remarks to TMTG, which did not immediately respond to requests for comment reported by multiple outlets. Shares of TMTG have shed roughly 27% of their value this year and closed at $9.66 on Friday, giving the company a market value of about $2.7 billion.

However, there are risks associated with this new revenue stream. Morgan Stanley strategists have concluded that Trump's ability to move stock markets has diminished during his second term, although his influence remains stronger in areas such as oil prices and trade-sensitive assets. Additionally, a May study by researchers at the University of Queensland found that traders who entered positions shortly before Trump's social media messages appeared captured significant gains, suggesting possible information leakage.

According to Los Angeles Times, the service provides buyers an advantage of seconds or milliseconds over rivals in accessing Trump’s posts. The company boasts that it plans to generate a recurring revenue stream from this scheme. TMTG has already signed up customers for the service, which will launch Aug 1.

Legal experts have raised questions about whether the arrangement amounts to insider trading or violates the STOCK Act, which forbids the use of nonpublic government information by members of Congress and executive branch employees for personal gain. Benjamin Schiffrin, director of securities policy at Better Markets, noted that this situation was not contemplated by existing laws.

The legality of selling preferential access to official announcements such as Trump’s posts is murky. Critics argue it raises ethical concerns and potential legal issues related to insider trading. Some experts suggest that the arrangement conflicts with the spirit of the STOCK Act and other rules barring officials from profiting off nonpublic government information obtained through their duties.

Despite these criticisms, some securities lawyers and market professionals argue that Truth API appears to fall within existing law because it sells speed to already public information, not advance access to unpublished decisions. They note that tech platforms and data vendors routinely offer tiered feeds that give paying clients faster access to public data.