House defense bill provision would ban military insider trading on prediction markets

The U.S. House Armed Services Committee introduced a provision in the annual defense authorization bill on June 2 that would bar U.S. military personnel and Pentagon staff from trading on prediction markets using non-public information. The measure was drafted following an incident in which a U.S. soldier was accused of insider trading on a classified military operation via prediction markets. The provision targets insider betting by defense staff, though available text did not include details on enforcement mechanisms or which specific platforms would be covered under the prohibition. The legislation would apply broadly to service members and Pentagon employees seeking to exploit classified or otherwise non-public information for financial gain on prediction markets.