[Draft of U.S. Defense Act Proposes Ban on Military Personnel Using Non-Public Information to Bet on Prediction Markets] According to CNN, the draft of the defense policy bill released by the U.S. House Armed Services Committee last week includes a provision prohibiting U.S. military personnel and Pentagon civilian employees from trading on prediction markets. The provision requires the Secretary of Defense to issue regulations banning relevant personnel from using "non-public information" they possess or could reasonably access to engage in prediction market transactions and to establish corresponding penalties. This move stems from an incident where a U.S. Special Forces soldier was accused of using classified information to bet on Polymarket regarding the arrest of Venezuelan President Maduro, profiting $400,000. The provision in the draft bill may undergo adjustments during the legislative process in the coming months, but if passed, it would signify that violators could face criminal penalties under military law.