Members of the U.S. military and Pentagon civilian employees could face new restrictions on prediction market trading under a draft defense policy bill moving through Congress, according to CNN.
The proposal would require Defense Secretary Pete Hegseth to establish regulations barring personnel from placing trades when they possess nonpublic information or could reasonably obtain such information through their roles. The draft legislation also calls for a range of penalties for violations.
The U.S. #CFTC #insidertrading #Polymarket #PredictionMarkets #USMilitaryhttps://t.co/SrIbQM4LE9 pic.twitter.com/eFuYeqraJc
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The measure follows a high-profile federal case involving a U.S. special forces soldier accused of using classified information to profit from bets related to the capture of Venezuelan leader Nicolás Maduro. The report said the soldier allegedly earned about $400,000 through trades and has pleaded not guilty.
According to CNN, lawmakers and regulators have grown increasingly concerned about insider trading risks as prediction platforms such as Kalshi and Polymarket gain popularity. The report noted that recent suspicious trades tied to geopolitical events have intensified scrutiny.
If approved, the proposal would expand existing restrictions and could expose violators to military or federal penalties.
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TIPP Staff
TIPP Staff
