Warner, Schiff probe potential insider trading in government

Sen. Mark Warner, D-Va. and Adam Schiff, D-Calif., demanded answers about potential insider trading in the government in a letter sent Thursday to the chairman of the Securities and Exchange Commission and the Defense Department inspector general.

The senators cited public reports of “large positions in stocks and equity-linked derivatives” being built ahead of major policy announcements such as decisions on the Iran war and President Donald Trump’s tariffs agenda. And they argued that these examples showed “federal officials disclosed material nonpublic information for financial gain.”

“Recent reports of stock trading, which emerged shortly before major government policy announcements, indicate that federal officials disclosed material nonpublic information for financial gain,” the lawmakers wrote in their letter to SEC Chairman Paul Atkins and Pentagon IG Platte Moring. he said. “These actions undermine the public interest and market integrity and require oversight from Congress as well as each of your relevant authorities.”

The letter arrives after a while turn related to reporting We think positions are created ahead of major policy announcements, which can pay big dividends later. Prediction markets have caught a similar heat recently and Financial Times reported A broker with ties to Defense Secretary Pete Hegseth plans to make a multimillion-dollar purchase to a defense-related fund before the White House begins war against Iran, a broker with ties to Defense Secretary Pete Hegseth said.

“The possibility that someone associated with the Secretary of Defense may have attempted to trade on material nonpublic information is extremely concerning and has serious consequences for U.S. national security,” said Warner and Schiff, the top Democrats on the Senate Intelligence Committee.

“The appearance that material nonpublic information prior to government announcements may be unequally distributed risks undermining investor confidence and the integrity of the U.S. capital markets,” they said.

Warner and Schiff asked Atkins and Moring to answer a series of questions, including whether they considered examining their agencies’ trading activities; what tools agencies use to detect suspicious trading; whether there are gaps in their institutions’ monitoring; and the safeguards and enforcement actions that both agencies have to prevent the unauthorized dissemination of nonpublic information and to prevent federal officials from using nonpublic information for personal gain.

“At a time when market sensitivity to policy developments is increasing, it is critical that all market participants operate on a level playing field,” they wrote.

The SEC declined to comment on the letter, and the Department of Defense IG office did not immediately respond to a request for comment.