Concerns over Trump's Truth API and SEC reporting changes
How information inequality could reshape market dynamics
1Market transparency under threat
US markets have long promised equal information access to all investors. But Truth Social's millisecond-advantage API and SEC's proposal for semiannual reporting are challenging this principle. Experts warn that increased private data streams could undermine market confidence, creating an uneven playing field for participants.
2Two-tiered market risk
Truth API will give some investors faster access to information than others. Tyler Gellasch of Healthy Markets Association warns this creates 'a two-tiered market where connected insiders gain advantage.' The risk appears greater considering Trump's proven ability to move markets with his posts.
3Potential SEC regulation clash
Former SEC director Renée Jones suggests Truth API may conflict with securities laws. As the largest shareholder of the public parent company, Trump profiting from the platform raises concerns about privatizing 'material nonpublic information.' Jones argues such data belongs to the government and public.
4Impact of semiannual reporting
SEC's consideration of shifting from quarterly to semiannual reporting also raises questions. Carnegie Mellon's Chester Spatt believes this change poses less risk than Truth API's asymmetry. However, both developments challenge the principle of investor equality in market information access.
5Market confidence at stake
Experts compare the situation to Enron and WorldCom scandals, warning that a 'rigged' appearance could erode investor trust. Gellasch notes investors might shift to European markets with stricter transparency rules, potentially threatening US competitive advantage in capital markets.
6Corporate conflict of interest
Trump's dual role as Truth Social owner and majority shareholder raises ethical questions about monetizing personal communications. The company's $405.9 million Q1 2026 loss highlights financial motivations behind this new revenue model, while blurring lines between personal, governmental and corporate interests.
Original article: Fortune — Trump'ın Truth API'si ve SEC raporlamalarıyla ilgili endişeler