The White House issued an internal directive last month cautioning employees against using nonpublic government information to place wagers on prediction markets.

The email, sent on March 24, came one day after U.S. President Donald Trump announced a five-day pause on his threat to strike Iranian power facilities and energy infrastructure.

According to reports, the message was triggered by media coverage raising concerns that government officials could be exploiting confidential information to trade on prediction platforms such as Kalshi and Polymarket.

White House spokesman Davis Ingle rejected any suggestion of wrongdoing, saying that “any implication that Administration officials are engaged in such activity without evidence is baseless and irresponsible reporting.”

The Wall Street Journal was first to report the existence of the internal email.

Ingle also emphasized that federal workers are bound by ethics rules prohibiting the use of nonpublic information for personal financial gain.

“The only special interest that will ever guide President Trump is the best interest of the American people,” he added.

The White House has not provided additional comment, and both Kalshi and Polymarket were contacted for response.

The warning comes amid heightened scrutiny of prediction markets, which allow users to bet on real-world outcomes ranging from elections and economic policy to geopolitical events. The platforms have surged in popularity in recent years, with more than $44 billion in trading activity across markets.

Kalshi and Polymarket have previously faced questions over whether traders could be benefiting from sensitive or insider knowledge. In January, Polymarket drew attention after a user reportedly earned nearly half a million dollars betting on the capture of Venezuelan President Nicolás Maduro shortly before the announcement, though the identity of the trader remains unknown.

The incident intensified debate over whether participants may have had access to advance information from a U.S. military operation.

Regulators and lawmakers have increasingly focused on the sector, warning that prediction markets can create loopholes for abuse. Earlier this week, Representative Ritchie Torres, a Democrat on the House Financial Services Committee, called for an investigation into what he described as “suspicious” trades.

The Commodity Futures Trading Commission oversees derivatives trading, including prediction markets.

In March, Democratic lawmakers also introduced legislation seeking to ban prediction market betting tied to war or military activity.

“Corruption and exploitation are thriving right now within the gaps and loopholes of prediction markets,” said Senator Andy Kim of New Jersey.

“This manipulation leaves the select few winning big, at the expense of working Americans,” he said.