Trump Media Plans to Launch a High-Speed Paid Posting Service for the President; Wall Street Questions Legal Risks

Source: Global Market Report

Trump Media & Technology Group recently announced the launch of a new data service, providing users with millisecond-level high-speed access to posts from "top accounts" on the Truth Social platform. According to sources familiar with the matter, the subscription fee for this service is $100,000 per month. This business initiative has quickly sparked widespread backlash on Wall Street, with several financial institutions and legal experts questioning its potential legal risks.

Posts by Trump on Truth Social have long been regarded as a key factor influencing the movements of the stock market, exchange rates, commodities, and bond markets. In the current environment of high policy uncertainty, his statements have repeatedly triggered dramatic market volatility. In materials presented to prospective clients, Trump Media listed 10 presidential posts that had previously influenced the market, including last year’s "Liberation Day" statement, which led to a 12% plunge in the stock market, and the comment about "striking Iran" in June, which sent oil prices soaring. The materials also revealed that before Trump’s announcement on March 23 regarding successful negotiations with Iran—which subsequently caused oil prices to plummet—some investors had already placed sizable bets in advance.

Legal experts point out that this service may face multiple legal risks. Richard Painter, Professor of Corporate Law at the University of Minnesota and former White House ethics advisor, noted that as Trump holds approximately $1.1 billion in shares in the company, the commercialization of information generated from his public office poses hidden dangers. James Cox, corporate law expert at Duke University, also believes that neither Trump nor his White House colleagues "have the right to commercialize information generated in their public service roles." However, some lawyers stated that financial institutions subscribing to this service might not violate federal regulations, though state attorneys general could launch independent investigations into such actions.

This high-speed information source is most valuable for high-frequency trading firms, as an edge of just a few milliseconds can yield considerable profits. Some macro hedge fund executives have indicated that since Trump's posts can affect the market, they may be compelled by their fiduciary duty to clients to subscribe in order not to fall behind competitors. However, some industry insiders believe that the service only provides a millisecond-level advantage, which offers limited competitive leverage for non-ultra-fast trading strategies. One crypto trader even bluntly stated that this move “is 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 criticized opponents for “inventing a new theory of ‘insider trading’ based on public information out of thin air.” The White House declined to comment. Since the service was announced, Trump has not posted any statements with a clear market impact on his Truth Social account.