Concerns Arise Over Trump’s Truth Social Offer

President Donald Trump displayed a copy of his Truth Social post aboard Air Force One, raising questions about his media company’s new service. Trump’s company is offering investors early access to his Truth Social feed, prompting ethical and legal issues. An image captured by Saul Loeb of AFP shows the scene.

Monetizing Truth Social Insights

Trump Media & Technology Group is marketing a premium version of Truth Social to investors. This version provides early access to posts by prominent users, including the president. For up to $100,000 a month, trading firms can use the ‘Truth API’ for early access to potentially market-moving announcements. The service targets institutional investors in areas such as high-frequency trading, where milliseconds can yield millions.

A Wall Street executive, requesting anonymity, expressed disbelief at the service. According to the executive, many in finance are avoiding any involvement due to fears of repercussions from the Trump administration.

Legal Concerns and Insider Trading

Securities experts warn of legal issues surrounding ‘Truth API’. Renée Jones, a Boston College professor and former SEC official, says the offering resembles insider trading. She notes that federal laws prohibit the misuse of non-public information for trading advantage.

Offering data access is not illegal for social media companies, yet Trump’s posts often involve official policy announcements. Hence, the paid service could face legal challenges. The 2012 Stock Act bans members of Congress and the executive branch from trading on privileged information.

Jones suggests Trump’s legal team might argue that public declaration of the feed nullifies deceit or fraud. Shannon Devine, a spokesperson for Trump Media, argues that ‘Truth API’ merely offers rapid access to public data and dismisses the notion of insider trading based on available information.

Political and Regulatory Reactions

Democratic Senators demand an SEC investigation into ‘Truth API’. Senators Elizabeth Warren and Adam Schiff criticize the service as an abuse of presidential office, requesting an inquiry from the SEC, which refused to comment. Devine labeled the letter as a partisan effort, claiming oppression of free-market practices.

Trump controls the largest share of his media company through a trust managed by Donald Trump Jr. Consequently, as customers subscribe to ‘Truth API’, the Trump family’s wealth could increase, further blurring the lines between public office and personal business ventures.

Virginia Canter, a former SEC lawyer, expressed concern over ‘Truth API’, highlighting how it could normalize insider trading while disadvantaging regular investors. The anonymous Wall Street executive questioned the ethics of monetizing the presidency, doubting whether financial institutions would challenge it.