In a decisive move, the U.S. Senate has enacted a ban prohibiting senators from engaging in trading activities within prediction markets, aiming to eliminate any advantages stemming from insider information related to non-public governmental developments.
The resolution effectively disallows both senators and their staff from participating in these markets that allow betting on political results, policy choices, and other events where lawmakers might possess privileged insights due to their roles.
“Senators should not be involved in speculative activities like prediction markets while receiving taxpayer-funded salaries,” asserted Sen. Bernie Moreno (R-Ohio), the resolution’s sponsor, emphasizing, “Serving in Congress is an honor, not a side hustle.”
The unanimous approval of this measure reflects bipartisan agreement on the ethical concerns associated with such trading practices, paralleling restrictions on stock trading for government officials.
Prominent prediction market platforms have expressed support for the Senate’s decision. Tarek Mansour, founder of Kalshi, praised the move as “a great step” and called for similar legislation in the House via an X post:
“Now, let’s pass this in the House!”
Polymarket also endorsed the resolution on X, stating, “We’re in full support of this. Our Rulebook & Terms of Service already prohibit such conduct, but codifying this into law is a step forward for the industry. Happy to help move this forward however we can.”
Kalshi has proactively blocked congressional members and enforced against insider trading. Mansour tweeted: “I applaud the Senate for passing this resolution… This is a great step to increase trust in our markets by making it… https://t.co/fELpqZH5Cf”
Minority Leader Chuck Schumer commended the Senate’s prompt action on the floor, urging the House and President Donald Trump’s administration to adopt comparable regulations. “Speaker Johnson should immediately do the same thing in the House,” he advised.
The Senate’s decision comes amid several high-profile insider trading cases involving prediction markets. Notably, a pseudonymous Polymarket account speculated on Venezuelan President Nicolás Maduro being ousted by month-end in January, profiting over $400,000 from this bet.
In recent developments, Gannon Ken Van Dyke, an active-duty U.S. Army soldier aged 38, was arrested for allegedly leveraging confidential information to place bets on prediction markets and has since pleaded not guilty to the charges.
State governments are also taking steps to counteract such issues; California, New York, and Illinois have issued executive orders in recent weeks, preventing state employees from using non-public data to bet on prediction markets.