What Happened
New Policy Targets Prediction Market Platforms and Protects Troops
Defense Secretary Pete Hegseth has issued a memo banning service members and Defense Department personnel from seeking personal financial gain from nonpublic military information. The ban targets prediction market companies like Polymarket and Kalshi, which allow people to place bets on various potential outcomes. Hegseth warned that such transactions can create a signal that can be exploited by hostile foreign intelligence services, putting U.S. troops and missions at risk. The move comes after an August report found that over 150 accounts may have traded on insider military information. This development was first reported by The Washington Post.