Trump Media & Technology Group (TMTG) has launched a paid service, dubbed Truth API, which provides Wall Street firms with access to the most influential accounts on its Truth Social platform. The move has drawn criticism from political opponents and raised concerns about potential insider trading and market integrity.
Democratic Senators Elizabeth Warren and Adam Schiff have formally requested that the U.S. Securities and Exchange Commission (SEC) investigate whether Truth API violates existing laws. The SEC has confirmed receipt of the letter but has declined to comment on whether an investigation will proceed. A key point of contention is whether the information provided by the service is considered public or non-public.
TMTG has responded to the senators' concerns, with a spokesperson stating that they "continue to mischaracterise Truth API either out of ideological opposition to free markets or a failure to grasp the distinction between public and nonpublic information - or, quite possibly, both." The company has also asserted that the senators "must have invented a new theory of 'insider trading' based on publicly available information."
However, Richard Painter, a former ethics lawyer for President George W. Bush, suggested that selling official U.S. government information on the platform prior to its public release could potentially be classified as insider trading. Painter told the BBC that if he were an SEC commissioner, he would demand a halt to the plan or assurances that no posts related to U.S. government business would be included.
Despite these concerns, some observers note that similar services are already operated by various data providers, news organizations, and stock exchanges, setting a precedent for TMTG's offering. However, the ethical implications of this specific service remain a subject of debate.
Donald Trump, who owns approximately 41% of TMTG through a trust overseen by his children, stands to profit from the Truth API service. Senators Warren and Schiff described the initiative in their letter to the SEC as "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."