Honesty and Trust in Service Act

This bill mandates the Secretary of Defense to establish regulations prohibiting Department of Defense personnel from engaging in prediction market transactions. The prohibition applies to both members of the covered Armed Forces and civilian employees. It specifically targets situations where individuals possess or can reasonably obtain material nonpublic information pertinent to the transaction through their official duties. The regulations must be issued within 180 days of the bill's enactment and will define a range of punishments for violations. Material nonpublic information is defined as information a reasonable investor would consider important for an investment decision that is not publicly available, aiming to prevent conflicts of interest and ensure integrity among defense personnel.