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Bill

HR 9082

Honesty and Trust in Service Act

119th Congress

Prohibits DoD personnel from participating in prediction markets if they possess or may obtain material nonpublic information through official duties; regulators must set penalties

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 9082

Summary of Bill: Honesty and Trust in Service Act (H.R. 9082)

  • Session and Status: 119th Congress, introduced May 29, 2026 by Rep. Vindman; referred to the House Committee on Armed Services.

  • Purpose: To prohibit members of the Department of Defense (DoD) and DoD civilian employees from participating in prediction markets when they possess material nonpublic information or could reasonably obtain such information in the course of official duties.

What the bill would do

  • Short Title: The Honesty and Trust in Service Act.

  • Prohibition on Use of Prediction Markets by DoD Personnel:

    • The Secretary of Defense, in consultation with the secretaries of the military departments, must issue regulations within 180 days of enactment.
    • These regulations would ban members of the covered Armed Forces and DoD civilian employees from entering into transactions on prediction markets under two circumstances: 1) They possess material nonpublic information at the time of the transaction. 2) They may reasonably obtain such material nonpublic information through official duties, including information not publicly available to the public practicing reasonable diligence.
    • The ban applies specifically to prediction market participation by DoD personnel.

  • Enforcement:

    • The regulations must specify a range of punishments for violations, establishing enforcement mechanisms and consequences for noncompliance.

  • Definitions:

    • “Covered Armed Forces” refers to the Army, Navy, Air Force, Marine Corps, and Space Force.
    • “Material nonpublic information” is information that a reasonable investor would deem important for an investment decision and that is not publicly available.

Who would be affected

  • DoD personnel, including:

    • Members of the Army, Navy, Air Force, Marine Corps, and Space Force (active duty and potentially other personnel categorized within “covered” forces by the regulations).
    • DoD civilian employees.

  • The bill’s impact is limited to prediction market participation; it does not address other financial markets or general information-sharing practices outside the scope of prediction markets.

Key provisions and changes

  • Requirement to issue regulations within 180 days post-enactment that:

    • Prohibit prediction market transactions by DoD personnel under the specified information-related conditions.
    • Define the scope of the prohibition and the kinds of transactions covered.
    • Establish a defined enforcement regime with a range of punishments for violations.

  • Establishment of penalties:

    • The law requires the regulations to set penalties, but the bill does not specify exact punishment levels; these would be determined in the implementing regulations.

Procedural and timeline aspects

  • Enactment-to-regulation timeline:

    • Within 180 days after enactment, the DoD Secretary (with concurrence from the secretaries of the military departments) must issue the regulatory framework implementing the prohibition.

  • Legislative path to date:

    • Introduced in the House on May 29, 2026; referred to the Committee on Armed Services.

Practical considerations

  • The act targets a narrow area of financial activity—participation in prediction markets—by DoD personnel when information misuse could pose conflicts of interest or threaten operational security and integrity.
  • Enforcement and definitions hinge on implementing regulations, including how “material nonpublic information” is interpreted in DoD contexts and what constitutes an appropriate punishment.

If you’d like, I can add a side-by-side comparison with typical DoD ethics rules or provide a plain-language FAQ for readers.

Compiled from official sources — confirm details with the bill’s official record.

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