Trump’s Truth API raises concerns over market transparency

President Donald Trump’s media company, Trump Media & Technology Group (TMTG), announced on Thursday the launch of a new product called Truth API, which will provide investors with millisecond-faster access to potentially market-moving posts from Truth Social. This development coincides with ongoing discussions at the Securities and Exchange Commission (SEC) regarding a shift from quarterly to semiannual disclosures by public companies, raising significant concerns about market transparency and fairness.

Key Details

Experts warn that the introduction of the Truth API could create a 'two-tiered market,' where a select group of investors gain quicker access to information, undermining the principle of equal access to market data. Kevin McGurn, Interim CEO of TMTG, stated that markets already react to posts from Trump, who has 12.9 million followers on Truth Social, making him the platform's most popular user. Tyler Gellasch, CEO of Healthy Markets Association, emphasized that the speed of information is critical, saying,

Milliseconds matter in modern markets, and the president’s social media posts move markets.

Background

Renée Jones, a former SEC official, echoed these concerns, suggesting that the Truth API could exacerbate existing inequalities in market information access. She noted that this could lead to a perception of a rigged market, where only those with paid access to faster information benefit. The SEC's consideration of less frequent public disclosures further complicates the issue, as it may encourage reliance on private information streams, potentially disadvantaging ordinary investors.