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White House issues insider trading warning to staff
An internal email sent to White House personnel last month cautioned against using non-public information to place wagers on prediction platforms. The message arrived one day after President Donald Trump paused threats to target Iranian energy sites.
Email follows media reports of potential misuse
The 24 March communication referenced press accounts that raised questions about federal employees exploiting confidential data on markets like Kalshi and Polymarket. The Wall Street Journal first disclosed the email on Thursday.
Administration denies wrongdoing
White House spokesman Davis Ingle dismissed suggestions of misconduct as "baseless and irresponsible reporting." He emphasized that all federal staff must follow ethics rules barring financial gains from insider knowledge.
"The only special interest that will ever guide President Trump is the best interest of the American people,"
Davis Ingle, White House spokesman
Prediction markets face growing scrutiny
Platforms handling over $44 billion in trades have surged in popularity, covering topics from sports to central bank decisions. Bets tied to conflicts have intensified regulatory debates.
In January, an anonymous trader earned nearly $500,000 on Polymarket by predicting Nicolás Maduro's capture before the official announcement. The incident sparked concerns about potential leaks from U.S. military operations.
Lawmakers push for stricter oversight
This week, Democratic Congressman Ritchie Torres urged the Commodity Futures Trading Commission to investigate "suspicious" trades. The commission oversees derivatives, including prediction markets.
In March, Democratic leaders proposed legislation to ban wagers on war or military actions. Senator Andy Kim of New Jersey warned that "corruption and exploitation are thriving" in current regulatory gaps.
"This manipulation leaves the select few winning big, at the expense of working Americans,"
Senator Andy Kim
Industry response pending
The BBC has sought comment from Kalshi and Polymarket regarding the White House email and broader regulatory concerns.
