The U.S. Senate unanimously passed a resolution on April 30 banning its members, staff, and officers from trading on prediction markets such as Polymarket and Kalshi. The rule, which took effect immediately, aims to prevent insider trading and address national security concerns. The move follows recent incidents, including a U.S. Army soldier being charged with using classified information to place bets on a military operation in Venezuela.
Sen. Bernie Moreno (R-OH), who sponsored the resolution, stated that lawmakers should not engage in speculative activities while receiving taxpayer-funded salaries. The resolution also included an amendment by Sen. Alex Padilla (D-CA) that expanded the ban to Senate officers and employees. Senate Minority Leader Chuck Schumer (D-NY) called for similar actions in the House and executive branch.
The ban comes amid growing scrutiny of prediction markets, which have faced criticism for allowing bets on sensitive events, including wars, elections, and military actions. A group of Democratic lawmakers recently urged the Commodity Futures Trading Commission to regulate these markets more strictly, citing concerns about insider trading and corruption. Additionally, Kalshi suspended and fined three political candidates for allegedly trading on their own campaigns.
Sens. Todd Young (R-IN) and Elissa Slotkin (D-MI) introduced a separate bill to prohibit all federally elected officials and government employees from using insider information for prediction market bets. Young described the Senate resolution as a 'good first step' but emphasized the need for broader reforms.