US Senators Target Trump Media's Data Monetization Plan Over Fair Market Concerns

Deep News
Aug 02

Trump Media & Technology Group Corp has launched a paid data subscription service called "Truth API," allowing financial institutions and corporate clients to access posts from high-profile accounts, including former President Donald Trump, on the Truth Social platform for up to $100,000 per month. The move, effective August 1, has sparked widespread controversy in the United States over allegations of potential conflicts of interest and market manipulation.

Interim CEO Kevin McGann stated that the new API aims to provide direct, authorized, and real-time data streams, enabling subscribers to access market-moving information ahead of regular users. Trump, who is the largest shareholder of the parent company and the platform's most influential user with 13 million followers, frequently posts major policy decisions on Truth Social, such as tariff policies and Middle East developments, which can trigger significant volatility in global financial markets. Analysts note that the premium subscription service effectively commodifies presidential policy information, granting institutional investors with financial resources a trading advantage based on information asymmetry.

The business model has rapidly drawn accusations of insider trading and undermining market fairness. Democratic U.S. Senators Adam Schiff and Elizabeth Warren have jointly written to Securities and Exchange Commission Chairman Paul Atkins, urging a comprehensive investigation into whether the company violated securities laws. In their letter, the senators emphasized that the practice constitutes an abuse of presidential power for personal gain, benefiting Wall Street and wealthy insiders while severely damaging market integrity and the rights of ordinary investors.

Market data shows that since Trump took office last year, shares of Trump Media & Technology Group Corp have fallen more than 70%, erasing approximately $60 billion in shareholder value. However, annual financial disclosures indicate that Trump earned over $1 billion in personal income from his companies and related cryptocurrency projects last year. The stock saw a 5.5% gain before the close on the day prior to the launch of the Truth API service. Observers suggest that the company is seeking to expand its core revenue streams by selling early access to high-value political information, amid pressure on its traditional advertising business.

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