Trump Media & Technology Group Corp’s (NASDAQ:DJT) new premium data service is drawing scrutiny and sharp criticism over its potential to give wealthy investors faster access to President Donald Trump’s market-moving Truth Social posts.
Trump Media Launches Paid Truth API
Trump Media launched its "Truth API" on Saturday, offering businesses a licensed, real-time feed of posts from prominent Truth Social accounts.
Interim CEO Kevin McGurn said the service is designed to provide companies with "a direct, licensed, real-time feed of the platform’s most market-moving Truths."
Although the company did not specifically identify Trump, his @realDonaldTrump account is by far the platform’s largest, with about 13 million followers as of Sunday evening.
Trump frequently uses Truth Social to announce major policy decisions and provide updates on geopolitical developments, including the war with Iran.
The service could give paying customers faster access to information that may influence financial markets. Trump’s family is also the largest shareholder in Trump Media, the publicly traded company that operates Truth Social.
Democratic Senators Seek SEC Investigation
The launch follows calls from Sens. Adam Schiff (D-Calif.) and Elizabeth Warren (D-Mass.) for the Securities and Exchange Commission to investigate whether the service violates federal law.
In a letter to SEC chair Paul Atkins, the senators argued that the product could undermine market integrity while benefiting wealthy investors and Trump-linked business interests.
"This appears to be an outrageous abuse of the President’s office for his personal benefit," they wrote, adding that the arrangement could harm everyday investors while enriching "Wall Street and other wealthy insiders."
Jason Calacanis Calls Truth API a ‘Very Dumb Idea’
All-In Podcast host Jason Calacanis criticized the initiative in a post on X, arguing that people close to Trump may be reluctant to challenge him.
"The people around President Trump [aren’t] giving him the good feedback," Calacanis wrote. "They’re simply too scared to lose their position close to the Oval to just say ‘this is a very dumb idea.’"
He added that the country could face "endless, justified investigations" into such projects.
Price Action: Trump Media & Technology Group Corp. closed Friday down 5.01% at $9.86 and slipped another 0.81% to $9.78 in after-hours trading, according to Benzinga Pro.
Benzinga Edge Rankings place DJT in the 10th percentile for Momentum, with the stock showing a negative long-term price trend despite positive short- and medium-term trends.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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