A paid information channel has once again dragged the president to court. The Intercept and the Freedom of the Press Foundation have officially sued Donald Trump, Trump Media & Technology Group, as well as White House staff Daniel Scavino and Natalie Harp in the US District Court for the Southern District of New York on Wednesday, August 13, 2026.
The root of the issue stems from the Truth API introduced by Trump Media in July 2026. The service was officially opened to institutional subscribers on August 1. With a subscription fee ranging from $60,000 to $100,000 per month, subscribers receive low-latency feed access to Trump’s posts on Truth Social.
The primary buyers are high-frequency trading (HFT) firms chasing split-second information. Their algorithms are designed to read data and execute market orders in just milliseconds. Trump Media admitted to having signed more than 10 subscriber agreements and generating revenue from this service.
The Constitution and the Millisecond Advantage
The lawsuit, which builds on an Associated Press report, highlights the dangers of information asymmetry. Trump has regularly announced federal decisions, foreign policy, and tariffs through Truth Social. All of these announcements have been proven to move stocks, exchange rates, commodities, and digital assets.
The plaintiffs allege two constitutional violations. First, the First Amendment: the president cannot give paid subscribers an advantage in the form of fast access to official government announcements while the public receives information later. Second, the Fifth Amendment: the government is prohibited from imposing financial conditions on access to public facilities, including presidential information.
Trump has close financial ties to this structure. The Donald J. Trump Revocable Trust controls approximately 41% of Trump Media’s shares, with Trump as the settlor and sole beneficiary. This shareholding was recently valued at over $1 billion.
Washington’s Reaction and the Kalshi Case
Trump Media denied the allegations, likening the Truth API to subscription data services in the traditional media industry. However, pressure in Washington came from a different direction. Senators Elizabeth Warren and Adam Schiff had previously requested the SEC to investigate whether the Truth API conflicts with federal securities laws, although the SEC has not announced any official investigation.
The practice of profiting from inner-circle government information was also recently investigated. Last July, the CFTC investigated a White House teleprompter operator who allegedly pocketed over $90,000 from Kalshi contracts using access to the text of Trump’s speeches.
News from the president can instantly impact trading screens. When government policies are sold before they are voiced to the public, market fairness is put to the test. For trading firms, $100,000 per month is a bargain price to ensure they always get a head start.
As reported by crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
