The White House sent an email to its staff on March 24 warning against placing bets on online prediction markets using nonpublic government information, officials confirmed. The message, circulated by the White House Management Office, emphasized that such activity is both a criminal offense and a violation of government ethics regulations.
The email specifically referenced concerns raised by recent press reports about government officials potentially exploiting inside information to trade on platforms like Kalshi and Polymarket. It reminded employees that federal ethics rules prohibit the use of any nonpublic information for personal or third-party financial gain.
“The misuse of nonpublic information by government employees for financial benefit is a very serious offense and will not be tolerated,” the email stated, directing staff with questions to consult the White House Counsel’s Office.
The Wall Street Journal was the first to report the existence of this internal email. In response to inquiries, White House spokesman David Ingle underscored President Donald Trump’s position that members of Congress and government officials must be barred from leveraging nonpublic information for financial advantage. He characterized any suggestion of wrongdoing by administration officials as “baseless and irresponsible reporting.”
The warning came shortly after a notable spike in oil futures trading minutes before President Trump announced on March 23 via Truth Social that he was postponing strikes on Iran’s power plants amid diplomatic talks. This unusual market activity, reported by Bloomberg News and the Financial Times, raised concerns about potential insider trading linked to advance knowledge of the President’s public statement.
White House spokesman Kush Desai reiterated on March 25 that all federal employees are bound by government ethics guidelines prohibiting use of nonpublic information for financial benefit and dismissed unfounded allegations against administration officials.
Why it matters
This warning highlights heightened vigilance within the White House concerning the improper use of insider information amid growing scrutiny of prediction markets, which have attracted attention for their potential to reveal or exploit sensitive government decisions before they are public. Ensuring compliance with ethics standards is critical to maintaining public trust and preventing corruption in government operations.
Background
Prediction markets allow users to bet on the outcome of future events, such as political decisions or geopolitical developments. Platforms like Kalshi and Polymarket have grown in popularity but raise legal and ethical questions when government insiders might use confidential information to gain financial advantage. Federal ethics laws prohibit such activity, and recent media reports have pressed regulators and officials to crack down on potential abuses.
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