Honesty and Trust in Service Act

The Honesty and Trust in Service Act prohibits members of the U.S. Armed Forces and Department of Defense civilian employees from participating in prediction markets if they possess or could reasonably access material nonpublic information related to the trades. To enforce this rule, the Secretary of Defense must issue regulations within 180 days that define the specific punishments for violations. The law defines material nonpublic information as data that would influence an investment decision but is not currently available to the general public. This measure directly affects service members and defense workers to prevent conflicts of interest arising from their access to confidential government information.