Allegations of 'Power Abuse' Against Trump: US President Sells Premium Access to His Posts
US President Trump is charging banks and trading firms $100,000 for early access to his social media feed.
Donald Trump's social media company has begun selling VIP access to his posts, even as critics call the service a “shocking abuse of power.” Truth Social, the Twitter-like service on which the president regularly publishes updates, now offers a high-speed feed for banks and high-frequency trading firms. The service, which costs up to $100,000 a month, is intended to allow paying customers to trade immediately on the basis of this data.
This article by James Titcomb was produced in cooperation with telegraph.co.uk.
Trump owns a 41 percent stake in Trump Media and Technology Group (TMTG), the company behind Truth Social. The plan to sell fast-track access to his posts, first reported in early summer, has triggered a backlash from Democrats, who say Trump is abusing his position to make money. Officially, the service is supposed to offer access to a selection of the highest-ranking Truth Social accounts, but Trump is by far the most popular user on the platform.
He has 12.9 million followers on the service, compared with 7.5 million for the next most popular account, his son Don Jr. His posts can regularly move markets and are closely followed by traders around the world. Observers warn that exclusive, faster access to this content could give institutional clients a significant advantage over the general public.
Allegations of Abuse of Power and Calls for Investigation
In a letter sent last week to Paul Atkins, the chairman of the Securities and Exchange Commission, Senators Elizabeth Warren and Adam Schiff called for an investigation into whether the arrangement is legal. “This appears to be an egregious abuse of the office of the presidency for personal gain, undermining retail investors and the integrity of our markets while enriching Wall Street and other wealthy insiders,” they wrote.
“President Trump has a significant financial interest in Trump Media, based on his ownership of approximately 41 percent of the company, and will therefore benefit from the launch of this service. Trump Media's plan to distribute market-relevant information about the president's own company and to grant insiders earlier access than the public in exchange for payment — to the benefit of his company and to the detriment of investors — constitutes a shocking abuse of the office of the presidency and of the American public's trust for his personal gain.”
Market-Moving Posts and a New Source of Revenue for TMTG
Trump's posts can regularly move markets. In addition to his statements on the state of the war in Iran, which have already affected oil prices and global stock markets, he frequently comments on individual companies, praising or criticizing them. Such comments are often interpreted by market participants as immediate trading signals.
Shares of the tech company Palantir jumped in April after Trump praised the company, while US bank Citigroup rose in June after a recommendation from the president. The Wall Street Journal reported last month that at least five high-frequency trading firms had already signed up for the service.
Trump's stake in TMTG is worth around $1.1 billion, although the company's shares have already fallen by 28 percent this year. TMTG has said it expects the Truth Social API service to become a significant source of revenue. It is still unclear whether any British trading firms have signed up for the service.
XTX, one of the largest British trading firms, said it had not done so so far. The UK financial regulator, the Financial Conduct Authority, declined to comment on whether it had concerns about the service. Market observers, however, expect regulators worldwide to scrutinize the sale of accelerated access to politically sensitive and market-moving information.
