Trump Tests the Definition of <em>Insider Trading</em>
A new Truth Social subscription service is another way for the president to profit from his office.
The Atlantic Daily reports on the launch of Truth API by Trump Media and Technology Group, a company majority-owned by President Donald Trump. The service offers users a raw feed of "market-moving" posts from the "highest-ranking Truth Social accounts," primarily President Trump's account with 13 million followers. Subscribers pay up to $100,000 a month for the service, which provides users with faster access to Trump's posts compared to the typical split-second lag time on social media platforms.
The primary purpose of Truth API is to provide investment firms with a competitive advantage by allowing them to act on Trump's statements before others, potentially giving them an unfair leg up on market movements. Critics argue that this violates insider-trading laws, which prohibit trading based on nonpublic information. However, some experts argue that existing securities laws may not be sufficient to address this issue, as the service merely provides faster access to information that is already publicly available.
Trump Media maintains that the posts will remain publicly viewable for all users, whether they pay for Truth API or not, making it difficult to argue that the information is nonpublic. The service is not the first of its kind, as stock exchanges already offer similar high-speed data feeds to institutional traders, which are considered legal.
Some legal scholars suggest that the law may not have caught up to this unprecedented situation, leaving the issue open to investigation by the Securities and Exchange Commission (SEC).
The SEC has not commented on the letter from Senators Elizabeth Warren and Adam Schiff, demanding an investigation into Truth API. However, the SEC's chair, Paul Atkins, is a Trump appointee, which raises questions about the agency's impartiality in the matter. Trump Media's CEO, former Representative Devin Nunes, stepped down earlier this year amid significant losses during his tenure.
The company's CEO is also reported to have earned over $2.2 billion in investments last year, making it one of the most profitable presidencies in terms of personal wealth.
Written by urgent.news from The Atlantic's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
