TL;DR
- Trump and Truth Social face a federal lawsuit over Truth API, a paid service offering faster access to posts from Trump and other major accounts.
- More than 10 customers reportedly pay between $60,000 and $100,000 per month, while Trump Media evaluates licensing the data to prediction-market operators.
- The company is reshaping its crypto strategy after ending planned CRO treasury and ETF arrangements with Crypto.com while retaining significant digital-asset exposure.
Truth Social faces a legal challenge as Trump Media & Technology Group expands commercial uses for real-time platform data. The dispute centers on Truth API, which gives paying clients faster access to posts that can influence financial markets.
The Intercept and the Freedom of the Press Foundation filed the lawsuit in the U.S. District Court for the Southern District of New York. The plaintiffs argue that preferential access to government-related communications raises constitutional and market-access concerns. Trump, White House officials and the White House itself are named as defendants.
Truth API launched on August 1 and has attracted more than 10 customers, according to interim Trump Media CEO Kevin McGurn. Most are reportedly financial firms, including high-frequency trading companies, paying between $60,000 and $100,000 per month for faster delivery of selected Truth Social posts.
Truth API Puts Real-Time Data At The Center Of The Dispute
Trump Media argues that Truth API commercializes publicly available information through a faster technical channel. McGurn described the service as delivering posts fractionally faster than conventional access, presenting it as a standard data-distribution model.
That distinction matters for crypto and prediction markets, where milliseconds can influence prices. Blockchain-based markets already show how quickly traders incorporate political developments. Research on prediction markets during the 2024 U.S. presidential election found significant trading activity around major political shocks, highlighting the value of precise information timing.
The plaintiffs seek court declarations that the arrangement is unconstitutional and want equal public access to official posts. The dispute also follows scrutiny from Democratic senators Elizabeth Warren and Adam Schiff, who asked the SEC to examine potential securities-law implications.
Prediction Markets Add A New Crypto-Affiliated Revenue Channel
Trump Media is evaluating licensing Truth Social data to prediction-market operators. McGurn said the company is considering opportunities in the sector but did not specify which data could be licensed or how markets would use it.
The move comes after Trump Media and Crypto.com scaled back their broader crypto partnership. The companies ended plans for a proposed CRO treasury company and discontinued Crypto.com’s involvement in planned Truth.Fi exchange-traded funds, signaling a shift in Trump Media’s crypto strategy.
Even so, Trump Media remains exposed to digital assets. The company has pursued Bitcoin and CRO-related initiatives, reflecting the growing use of crypto treasury strategies among public companies.
