Donald Trump has effectively proposed selling inside information from the White House to aid Wall Street traders.
Trump Media will sell Wall Street firms quicker access to market-moving posts from the President through a newly launched Truth API.
“Markets already move on Truth Social posts,” said Kevin McGurn, Interim CEO of Trump Media & Technology Group, in a press release.
“Truth API delivers a direct, licensed, real-time feed of the platform’s most market-moving Truths while advancing our strategy to monetize proprietary assets through a high-margin, recurring revenue stream. As adoption grows, we expect Truth API to become a meaningful, ongoing source of revenue for the company, creating lasting value for shareholders.”
The company added that the API is “designed for organizations most affected by the cost of delayed information.”
API to Include Top Truth Social Posters
Competing social networks also sell traders access to their APIs. However, this does not usually include information directly from the White House that can affect markets so directly.
The feed will provide real-time data from the top 10-ranking Truth Social accounts. Trump has the most followers on the platform, with 12.9 million. He is also Trump Media’s largest shareholder, owning 41% of the company.
The API will launch on August 1 and has already signed deals with some institutional customers.
Prediction Market Traders To Benefit
The expansion of prediction markets has made it easier than ever to trade using insider information. Polymarket and Kalshi offer a wide range of political and economic markets that could be affected by Trump’s decisions, which he often announces on Truth Social before anywhere else.
For example, on Monday, Trump announced on Truth Social that he would reinstate a blockade against Iran and impose a 20% fee on commercial traffic. On Wednesday, he canceled the plan to impose a fee.
Polymarket offers a market on when fees will be introduced. The chance of Trump imposing the levy before the end of the month spiked to 42% on Monday, then dropped to 1% after the plan was canceled.
Traders using the API would be able to maximize profits in such markets by acting before the Trump announcements become public.
Trump has also been accused of manipulating share prices via Truth Social posts. A CNN investigation found he promoted companies on the platform days after buying their stock.
White House Suspends Teleprompter for Insider Trading
The Trump Media announcement came on the same day that the White House put a teleprompter on unpaid leave over allegations of insider trading.
Gabriel Perez allegedly placed bets at Kalshi on at least 12 different Trump speeches over a three-month period, according to CFTC investigators.
“The White House has strict ethics guidelines that we expect all staffers and officials to follow,” said White House spokesperson Davis Ingle.
Major US banks have also told their employees they risk termination if they make finance- and politics-related prediction market trades. The trading arms of the banks would likely have no qualms about using the Truth API feed to profit, however.
