The U.S. Senate unanimously passed a resolution banning senators and their staff from participating in prediction markets. The move responds to concerns about lawmakers exploiting non-public information for personal profit.
Senate Resolution 708 takes immediate effect. Republican Senator Bernie Moreno of Ohio introduced it. It’s the first explicit congressional rule targeting prediction market activity by federal legislators.
“Senators have no business engaging in speculative prediction trading while on the public payroll,” Moreno said, according to his office. He framed Congress as a public trust. Not a “side hustle.”
The resolution prohibits participation in markets tied to events senators might learn about through their official duties. It treats insider information the same way stock trading rules do.
Minority Leader Chuck Schumer praised the swift action. He publicly urged the House and President Trump’s administration to adopt comparable restrictions, according to the Senate announcement.
Major prediction market operators welcomed the ban. They see it as a path toward industry legitimacy.
“This is a great step forward for legitimizing the industry,” Tarek Mansour said. He’s the founder of Kalshi. He noted that Kalshi already blocks members of Congress and actively polices insider trading. He pushed for the House to follow the Senate’s lead.
A Polymarket spokesperson echoed that support. “We fully support the move, as it aligns platforms with government ethics standards.” The company stressed that its own rules already forbid such conduct. But formal legal bans help reinforce user trust.
The Senate acted amid recent insider trading scandals involving prediction markets. A pseudonymous Polymarket user allegedly used confidential U.S. government information to bet that Venezuelan President Nicolás Maduro would be out of office by January’s end. The user reportedly earned more than $400,000.
U.S. Army soldier Gannon Ken Van Dyke was arrested in connection with the case. He’s pleaded not guilty. The case highlights how sensitive intelligence can be monetized through these platforms.
The resolution signals growing bipartisan concern. Prediction markets pose corruption and conflict-of-interest risks for officials. Just like stocks.
The move may accelerate similar action in the House, the executive branch, and at state levels. California, New York, and Illinois have already curbed insider use of such markets.
Industry support suggests something. Regulated prediction market operators see strict ethics rules for public servants as essential to long-term regulatory acceptance and mainstream adoption.
