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New Defense Bill Could Restrict Military Betting on Prediction Markets

KVIA•Tuesday, June 2, 2026 at 7:00 AM•CNN Newsource

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AI Summary

A draft defense policy bill in Congress proposes to prohibit U.S. military personnel from engaging in prediction markets where they might leverage nonpublic information. This move follows allegations against a special forces soldier who reportedly used classified data to profit $400,000 from betting on the capture of Nicolás Maduro. If enacted, the bill would require the Defense Secretary to establish regulations and penalties for violations, expanding existing laws against insider trading. Critics argue that the bill could unfairly target military members while broader issues of insider trading in prediction markets remain unaddressed.

Key Details: • Draft bill requires Defense Secretary to regulate prediction market betting by military personnel. • Allegations stem from a soldier's $400,000 profit linked to insider information on Maduro. • The bill could introduce criminal penalties under military law for violations. • Concerns raised about the timing of trades related to geopolitical events. • Similar restrictions have been implemented for Senate members and some state employees.

military congress insider-trading prediction-markets defense-bill

People & Organizations

Pete HegsethCommodity Futures Trading CommissionEugene FidellFranklin RosenblattNational Institute of Military Justice

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