According to a CNN report, the US House Armed Services Committee has introduced a draft of the National Defense Authorization Act (NDAA) that prohibits US military and Department of Defense employees from using non-public information to place bets on prediction markets.

This bill was primarily prompted by the recent indictment of a US Special Operations forces member who wagered a large sum on the prediction market platform 'Polymarket' just before an operation to capture Venezuelan President Nicolas Maduro. The core of the proposed bill is that it expands the scope of the betting ban to include general 'non-public' information, rather than being limited solely to 'classified' information.

Recently, as suspicions of insider trading on prediction markets surrounding major geopolitical events continue to emerge, the US Commodity Futures Trading Commission (CFTC) has also declared its intention to enforce strict regulations. However, concerns have been raised simultaneously regarding a potential shortage of personnel to handle these enforcement duties. Such regulatory movements are spreading to the legislature and local governments as well. The US Senate and some House representative offices have already banned their staff from using prediction markets, while California and Illinois have also implemented executive orders prohibiting state public employees from betting on prediction markets using inside information.