Emanuel Proposes Banning Federal Employees from Prediction Markets, Citing Iran War Insider Trading Concerns

Former Ambassador Rahm Emanuel proposed banning all federal employees and their families from betting on prediction markets across the executive, legislative, and judicial branches, citing evidence that 'somebody clearly with inside information inside the government was making bets, made money' ahead of military operations in Venezuela and Iran. Emanuel said he would establish a Justice Department division to investigate such betting if elected in 2028. The proposal would be pursued through Congressional action, with executive orders as backup. The IC dimension is direct: cleared personnel with access to operational planning, targeting data, or diplomatic signaling possess material nonpublic information that prediction markets can monetize. No current federal ethics regulation explicitly prohibits prediction market wagering by intelligence community employees.