Senators ban themselves from prediction markets

Senators ban themselves from prediction markets

The Senate unanimously agreed to a resolution Thursday barring its members from trading on prediction markets in the face of growing concerns about insider trading on the platforms.

The resolution, which was introduced by Sen. Bernie Moreno (R-Ohio) last week, amends the chamber’s rules to prohibit senators from entering into “an agreement, contract, or transaction that provides for any purchase, sale, payment or delivery” based on an event’s outcome.

Prediction markets allow people to place wagers on the outcome of various events, from elections to sports to the economy.

“Proud to say my bill to ban members of Congress from insider trading on prediction markets just passed the Senate UNANIMOUSLY!” Moreno wrote on the social platform X. “Serving in Congress is an honor, not a side hustle. Americans deserve to know that their leaders are here for the right reason!”

Two of the most prominent prediction markets, Kalshi and Polymarket, both voiced support for the effort.

“I applaud the Senate for passing this resolution to ban Senators and their offices from trading on prediction markets,” Kalshi CEO Tarek Mansour said on X. “Kalshi already proactively blocks members of Congress and enforces against insider trading.”

“This is a great step to increase trust in our markets by making it an industry standard,” he continued. “Now, let’s pass this in the House!”

Polymarket similarly said it is “in full support of this,” while noting that its rules “already prohibit such conduct, but codifying this into law is a step forward for the industry.”

The Senate resolution comes after the Department of Justice (DOJ) revealed last week that it had charged an Army soldier for using confidential information about the operation to capture Venezuelan President Nicolás Maduro in bets on Polymarket.

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