In a swift move, the U.S. Senate, which has faced challenges advancing crypto market regulation legislation, unanimously adopted a ban on member participation in prediction markets. This decision came after Ohio Republican Senator Bernie Moreno introduced a straightforward 14-line resolution.
The unanimous agreement aims to address concerns surrounding these betting platforms, known for their popularity and controversy due to alleged insider trading and regulatory jurisdiction disputes.
Senator Moreno emphasized that senators should not engage in speculative activities like prediction markets while receiving taxpayer funds: “Serving in Congress should never be about finding new ways to profit; it should be about delivering results for the American people.” The rule change, effective immediately, prohibits senators from engaging in any contract or transaction contingent on specific event outcomes.
The rise of political betting has led to penalties for some office candidates wagering on their own races. Polymarket, a leading platform, expressed support for the Senate’s decision on social media platform X. Despite its operations being restricted in the U.S. following an agreement with the CFTC in 2022, Polymarket noted that user rules already prohibit such activities, and making this prohibition law is beneficial for the industry.
Currently, betting odds on Polymarket suggest Democrats have even chances of regaining Senate control in the upcoming November elections. The party has shown more skepticism towards the rapidly growing prediction market sector.