Defense Secretary Pete Hegseth: US Enemies Monitor Prediction Markets for Intelligence

Defense Secretary Pete Hegseth warned military members and department personnel that using nonpublic information on prediction markets is not only illegal but poses national security risks. In a letter dated Oct. 20, 2026, Hegseth, the secretary of the Department of Defense, known as the Department of War under President Donald Trump’s second administration, reminded the Pentagon and all department personnel that they are prohibited from engaging in financial transactions using nonpublic information, either directly or through a third party. The ban applies to all financial exchanges, including prediction markets, as well as sports betting platforms.