Pentagon Prohibits Personnel From Trading on Polymarket and Kalshi
The U.S. Department of Defense has banned military and civilian personnel from using nonpublic information for trading on prediction markets.
The U.S. Department of Defense has banned military and civilian personnel from using nonpublic information for trading on prediction markets. This is an original TLT brief synthesising 2 outlets (Blockonomi, Bitcoin.com), plus live market data, as of Fri, 23 Oct 2026 17:00:04 UTC.
This directive aims to prevent the exploitation of sensitive military information for financial gain and to protect national security by limiting the risk of intelligence exposure through prediction market activities.
- Pentagon bans military personnel from trading on Polymarket and Kalshi using nonpublic info.
- Defense Secretary Pete Hegseth warns of risks to military operations and intelligence security.
- Ban covers both classified and unclassified information, including indirect trades via third parties.
- Polymarket's TVL rose 8.4% in the past week to $376.65M.
Blockonomi and Bitcoin.com both report that the Pentagon has officially prohibited military personnel and civilian employees from using nonpublic information to trade on prediction markets like Polymarket and Kalshi. The directive, issued by Defense Secretary Pete Hegseth, emphasizes the potential risks to military operations and intelligence security. While both outlets highlight the ban on using nonpublic information, Bitcoin.com provides additional context about the prosecution of a Special Forces soldier, suggesting a possible catalyst for the policy change.
The U.S. Department of Defense has issued a directive banning military personnel and Pentagon employees from using nonpublic information to trade on prediction markets, including Polymarket and Kalshi. The ban extends to both classified and unclassified information and covers indirect trades made through third parties.
Defense Secretary Pete Hegseth warned that such trading activities could expose sensitive military operations and intelligence to foreign adversaries, potentially endangering U.S. troops. The directive aims to prevent the exploitation of insider information for financial gain and to protect national security.
This development follows the prosecution of a Special Forces soldier accused of using nonpublic information for trades, as reported by 
Bitcoin.com. The case may have prompted the Pentagon to formalize and strengthen its stance on insider trading within prediction markets.
The ban comes at a time when Polymarket, a prominent prediction market platform, has seen its Total Value Locked (TVL) rise by 8.4% over the past week to $376.65M, according to DeFiLlama. This indicates growing interest in prediction markets despite regulatory and security concerns.
The broader crypto market remains relatively stable, with a total market cap of $2.8T. Bitcoin's price has shown little movement in the past 24 hours, currently trading at neutral levels according to the Fear & Greed Index.
Figures and sectors in this story, checked live against on-chain aggregators · October 23, 2026.
TLT reads these figures directly from on-chain aggregators (DeFiLlama, mempool.space) at build time — independent of what any outlet reported. Sector totals aggregate every protocol DeFiLlama tracks in that category. Values are live and will change.
Pentagon Prohibits Personnel From Trading on Polymarket and — questions & answers
What is the Pentagon's new policy on prediction market trading?
The Pentagon has banned military and civilian personnel from using nonpublic information to trade on prediction markets like Polymarket and Kalshi.
Why did the Pentagon issue this ban?
The ban aims to prevent the exploitation of sensitive military information for financial gain and to protect national security.
What risks does the Pentagon associate with prediction market trading?
The Pentagon warns that such trading could expose military operations and intelligence to foreign adversaries, potentially endangering U.S. troops.
Which outlets reported this story?
This is an original TLT brief that synthesises reporting from Blockonomi, Bitcoin.com, with the key figures cross-checked for agreement across them. It is not a copy of any one article — follow the source links above for the original reporting.
Original summary — not financial advice. This is an original TLT brief that summarises a development reported elsewhere and adds live market data for context; it is not the original article and reproduces no part of it. Follow the source link above for full details. Crypto is volatile and high-risk — always do your own research.