Trump Media wants to monetise market-moving social posts: Could Trump’s posts become tradable data? Is that even legal?

Donald Trump's social media posts have the potential to move financial markets, leading the company Trump Media & Technology Group (TMTG) to launch a service called Truth API. This service grants traders faster access to posts from influential Truth Social users, with the company already having more than 10 customers. The interim CEO, Kevin McGurn, stated that the Truth API product is already generating revenue, with monthly charges potentially reaching $100,000.

The firm believes the service will become a meaningful and durable source of revenue, complementing its advertising and digital assets strategy. However, this move has raised legal and ethical concerns. Former chief ethics lawyer to President George W Bush, Richard Painter, warned that even if Trump doesn't trade on US government information, there's still a risk of insider trading liability under the tipper-tippee rule.

Painter stated that if he were the SEC commissioner, he would threaten to resign unless the plan is stopped. TMTG reported a wider second-quarter loss due to unrealised losses on its cryptocurrency assets, which suffered during April-to-June quarter market uncertainty.