Trump Media & Technology Group has announced a new data service designed to provide users with millisecond-speed access to posts from prominent accounts on the Truth Social platform. According to informed sources, the subscription fee for this service is set at $100,000 per month. This business plan has swiftly prompted widespread backlash on Wall Street, with numerous financial institutions and legal experts raising questions about its potential legal risks.
Posts by Trump on Truth Social have long been considered a key factor influencing movements in stock markets, exchange rates, commodities, and bond markets. Against a backdrop of high uncertainty regarding government policy, his remarks have repeatedly triggered significant market volatility. In materials presented to potential clients, Trump Media cited 10 presidential posts that had previously impacted the markets. These included a statement last year on "Liberation Day" that led to a 12% stock market plunge, and a June comment about "hitting Iran hard" that drove a surge in oil prices. The materials also indicated that before Trump announced on March 23rd that productive negotiations with Iran were underway, which was followed by a sharp drop in oil prices, some investors had already placed large-scale bets in advance.
Legal experts point out that the service could face multiple legal challenges. Richard Painter, a corporate law professor at the University of Minnesota and former White House ethics advisor, noted that Trump holds approximately $1.1 billion in shares of the company, and there are concerns about commercializing information generated from his public office role. James Cox, a corporate law expert at Duke University, also believes that Trump and his White House colleagues "have no right to commercialize information they generate in their official capacity." However, other attorneys suggest that financial institutions subscribing to the service might not violate federal rules, but state attorneys general could initiate independent investigations into such practices.
This high-speed information feed is most valuable to high-frequency trading firms, where a lead of a few milliseconds can translate into significant profits. Some executives at macro hedge funds stated that since Trump's posts influence markets, funds might feel compelled to subscribe due to their fiduciary duty to clients, to avoid falling behind competitors. However, other industry insiders believe the service offers only a millisecond advantage, providing limited competitive edge for trading strategies that are not ultra-high-speed. A cryptocurrency trader was more direct, calling the move a "serious abuse of power".
A spokesperson for Trump Media Group responded that the service provides "the fastest access to publicly available Truth Social data," and that critics have "invented a novel theory of 'insider trading' based on public information out of thin air." The White House declined to comment on the matter. Since the service was announced, Trump has not yet posted any remarks on his Truth Social account with a clear, significant market impact.
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