Trump Media’s $100,000 Truth Social Data Feed Draws Wall Street Legal Scrutiny

Trump Media & Technology Group, which operates President Donald Trump’s Truth Social platform, is facing growing pushback on Wall Street after moving to sell a data service that delivers posts milliseconds before they reach regular users. Critics say the model could intensify concerns about market fairness and legal liability if the president’s market-moving influence is turned into a business.

The Financial Times reported on July 24 that Nasdaq-listed TMTG last week introduced a new service, called Truth API, that gives subscribers faster access to posts from major Truth Social accounts than ordinary users receive. People familiar with the matter told the newspaper the service is being marketed at about $100,000 a month.

The offering is being cast as another example of Trump profiting from his influence while in office. In a financial disclosure released last month, Trump said he generated $2.2 billion in income last year from businesses including cryptocurrency and Bible sales.

On Wall Street, the bigger concern is legal exposure rather than the product itself. Financial firms and legal advisers are examining what issues could arise if some investors receive posts hinting at presidential policy or government action before others do. Several lawyers described the service as a “legal minefield.”

Richard Painter, a professor at the University of Minnesota Law School, said he would advise the chief legal officer of an institutional investor not to use the service unless there is a guarantee that posts related to government policy are not being provided in advance. That kind of early access could create legal risk for financial firms.

The White House declined to comment and referred questions to TMTG. The company countered that Truth API simply delivers public data faster and rejected claims that it amounts to a new kind of insider trading based on public information.

Trump’s Truth Social posts have been treated as a major market variable because the current administration’s policy direction is often seen as unpredictable. Client materials reviewed by the FT included 10 examples of posts that moved markets, including last year’s “Liberation Day” tariff announcement and a June post threatening a strong attack on Iran. Stocks fell 12% after the tariff-related post, while international oil prices surged after the Iran remarks.

The materials also cited instances in which some investors placed large trades shortly before market-moving announcements. One example involved about $580 million of crude trading before Trump announced progress in negotiations with Iran on March 23, after which oil prices fell sharply. TMTG said several companies have already signed contracts since the service was announced, though the FT said there have been few Trump posts since then with a clear market impact.

Legal experts are also focused on Trump’s TMTG stake, worth about $1.1 billion. James Cox, a professor at Duke University School of Law, said the president and White House officials should not commercially exploit information produced through their public positions. That could raise questions about the use of government information for private gain. Another lawyer said the more realistic risk may come from state attorneys general rather than federal regulators.

The service’s economic value may be greatest for high-frequency trading firms running ultra-fast strategies, where even milliseconds can materially affect returns. One macro hedge fund executive said firms may ultimately have to pay because Trump’s posts move markets. Another hedge fund executive said some managers may consider subscribing as part of their fiduciary duty to clients so they do not fall behind rivals. In crypto trading circles, critics also raised concerns about abuse of power.

Others argued the service will not matter to every investor. Another hedge fund executive said a millisecond advantage is meaningful only for a narrow group of firms using ultra-fast trading strategies and offers little benefit for most investment approaches. How much Truth API ultimately changes market structure, and how far the legal controversy spreads, will depend on how regulators and market participants respond.

Kim Ju-wan, Hankyung.com reporter kjwan@hankyung.com