Trump Media’s Truth API data service is meeting resistance from some trading firms, according to people familiar with the matter cited by BlockBeats on Aug. 13. While some firms have already signed up for the product, others, including Hudson River Trading and Citadel Securities, have declined to pay for it, saying the service is not necessary for trading operations. The people spoke on condition of anonymity because the information is not public.
The dispute is also drawing attention to a regulatory gap. Analysts said current insider-trading rules do not clearly address a situation in which a sitting president uses a media platform he controls to release market-moving information, or sells faster access to that information. Karen Woody, a law professor at Washington and Lee University School of Law, said the regulatory framework was not built with that possibility in mind. U.S. Securities and Exchange Commission Chair Paul Atkins previously said in an interview that the SEC is monitoring developments related to the Truth API data stream.
Trump Media's Truth API data service is facing resistance from some trading firms, according to people familiar with the matter cited by BlockBeats on Aug. 13.
Some trading firms have already signed agreements to use the service. Others, including Hudson River Trading and Citadel Securities, do not want to pay for it because they do not view it as necessary for trading operations, the people said. They asked not to be identified because the information is not public.
Questions emerge around the limits of current rules
Analysts said existing insider-trading regulations do not clearly cover a scenario in which a president uses a media platform owned by him to publish information that could move markets, or sells faster access to such information to market participants.
Karen Woody, a professor at Washington and Lee University School of Law, said the regulatory system in the past had not been designed around the possibility that a sitting president might act in this way.
U.S. Securities and Exchange Commission Chair Paul Atkins previously said in an interview that the SEC is watching the Truth API data stream.
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