A draft of the U.S. defense bill proposes to prohibit military personnel from using non-public information to place bets in prediction markets.

CoinFeed reported on June 2nd that, according to CNN, a draft defense policy bill released last week by the U.S. House Armed Services Committee includes a provision prohibiting U.S. military personnel and Pentagon civilian employees from trading in prediction markets. This provision requires the Secretary of Defense to issue regulations prohibiting such personnel from using "non-public information" they possess or could reasonably obtain to engage in prediction market trading, and to establish corresponding penalties. This move stems from the accusation that a U.S. Special Forces soldier used classified information to bet on the arrest of Venezuelan President Maduro on Polymarket and profited $400,000. This draft provision may face adjustments during the legislative process in the coming months, but if passed, it would signify that military personnel violating this rule could face criminal penalties under military criminal law.