White House staff told not to place bets on prediction markets

White House Staff Told Not to Place Bets Using Insider Information

Last month, the White House issued a directive cautioning its personnel against leveraging non-public data to wager in prediction markets. The alert, dispatched on 24 March, followed Trump’s declaration of a five-day halt on potential strikes against Iranian energy facilities and infrastructure the previous day.

Press outlets highlighted concerns regarding government officials utilizing confidential information on platforms such as Kalshi and Polymarket. Davis Ingle, White House spokesperson, stated that “any implication that Administration officials are engaged in such activity without evidence is baseless and irresponsible reporting.”

“The only special interest that will ever guide President Trump is the best interest of the American people,” Ingle added.

The Wall Street Journal first disclosed the email on Thursday. Ingle also noted that all federal employees must adhere to government ethics protocols, which forbid the use of insider knowledge for financial advantage.

In January, Polymarket faced scrutiny after a bettor secured nearly half a million dollars on Maduro’s capture shortly before the official announcement. The account, which remained unidentifiable, featured a blockchain-based alphanumeric identifier.

Questions arose whether the individual had accessed privileged information about the U.S. military operation. Prediction markets, which facilitate over $44 billion in transactions annually, have gained traction in recent years. These platforms allow betting on a wide range of topics, from sports events to economic decisions like Federal Reserve rate cuts and election outcomes.

This week, Democratic Congressman Ritchie Torres, a member of the House Financial Services Committee, wrote to the Commodity Futures Trading Commission requesting an examination of “suspicious” trades. The commission regulates derivatives trading, which includes prediction markets.

Senator Andy Kim of New Jersey remarked that “corruption and exploitation are thriving within the gaps and loopholes of prediction markets.” He added that “this manipulation allows a select few to reap significant rewards, often at the expense of working Americans.”