Trump's Actions Divide the US, Banks Urged to Reject Subscription Scheme

The actions of US President Donald Trump have once again sparked controversy. There is a growing debate over his social media company’s plan to offer a subscription package costing up to US$100,000, equivalent to Rp1.7 billion, on the Truth Social platform. The package from Trump Media & Technology Group (TMTG) would allow subscribers faster access to Trump’s posts on Truth Social. TMTG has reportedly discussed the fee with investment firms and Wall Street brokers. In addition to quicker access to Trump’s posts, subscribers would also get early access to posts from the 10 most influential Truth Social accounts. This move marks TMTG’s first foray into the data licensing business and opens a new revenue stream for the company. However, the plan has drawn sharp criticism from the Democratic Party, as Trump’s Truth Social posts often influence financial markets. The speed of obtaining information would be crucial for high-frequency trading firms, where a difference of just a few milliseconds can yield profits of hundreds of thousands of dollars on large transactions. US Senator Ron Wyden, a Democrat, argued the subscription service could provide financial benefits to the Trump family while enriching Wall Street brokers. Senator Elizabeth Warren also called it a terrible scheme. ‘This is an outrageous scheme to profit off the presidency and enrich Wall Street, while doing nothing to help the American people,’ Warren said, as quoted by Reuters. Donald Sherman, president of the nonpartisan watchdog group Citizens for Responsibility and Ethics in Washington, deemed the Truth API scheme ‘profoundly unethical’ because the president could potentially profit from payments for faster access to his posts. However, he said it remains difficult to determine whether the scheme violates the law based on available public information. Democrats are urging banks and investment firms to avoid this new TMTG product. A senior Democratic official warned that the product creates a deeply troubling information asymmetry regarding government policy. Wall Street banks have shown little interest in the product. A source at one major bank said their institution was not considering acquiring the subscription product offered by TMTG. The source noted that if a subscription were to be considered, the potential political risks would need to be assessed first. The person, who requested anonymity to discuss the sensitive matter, said that access to the president’s Truth Social posts would create a different kind of risk than buying faster access to market or trading data, as it means paying for access to a government official discussing policy. A second source familiar with the matter at another major bank said that institution was also not currently considering subscribing. Senator Mark Warner, a senior Democrat on the Senate Intelligence Committee, urged the heads of the nation’s leading financial industry groups to publicly reject the arrangement, arguing it would allow Trump to personally profit from government policy announcements. ‘I urge you to affirm that the financial services industry will not legitimise the practice of selling privileged access to the president’s market-moving communications, especially for the president’s personal financial gain,’ he wrote in a letter sent to the leaders of six major financial trade associations. Warner is also a member of the Senate Banking Committee. Spokespeople for the Bank Policy Institute, the Securities Industry and Financial Markets Association, the Managed Funds Association, the Financial Services Forum, the Principal Traders Group, and the American Bankers Association did not respond to requests for comment. The White House directed requests for comment to TMTG, which also did not respond. The product, called ‘Truth API’, would channel posts from the 10 most influential accounts to subscribers at a much higher speed than standard push notifications on the Truth Social platform. Legal experts say technology platforms are generally permitted to offer early data access to clients, even if it disadvantages some market participants. However, other ethics experts argue this situation is unusual because Trump’s posts constitute government information.