US Defense Bill Draft Proposes Banning Military Personnel from Betting on Prediction Markets Using Non-Public Information

According to CNN, a draft defense policy bill released last week by the U.S. House Armed Services Committee includes a provision that would prohibit U.S. military personnel and Pentagon civilian employees from trading on prediction markets. The provision requires the Secretary of Defense to issue regulations prohibiting relevant personnel from using "non-public information" they possess or could reasonably obtain to trade on prediction markets, and to establish corresponding penalties. This move stems from an incident where a U.S. special forces soldier was accused of using classified information to bet on the arrest of Venezuelan President Maduro on Polymarket and profited $400,000. The provision in the draft bill may face adjustments during the legislative process in the coming months, but if passed, it would signify that errant service members could face criminal penalties under the Uniform Code of Military Justice.