The United States Senate approved a bipartisan amendment on Thursday banning senators from trading on prediction markets. The move targets conflict-of-interest risks and insider information concerns. Lawmakers passed the measure by voice vote, showing broad agreement across parties.
The amendment is introduced by Bernie Moreno. It prohibits senators from entering into contracts where payments depend on the outcome of specific events. These include agreements tied to political, economic, or social developments.
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Senate Targets Insider Risks in Prediction Markets
Platforms like Polymarket and Kalshi are directly affected by the restriction. These platforms enable users to exchange contracts pegged to real-life outcomes. Players bet on events such as elections and market indicators.
Moreno explained that personal financial gain should not be obtained through public office. He said that lawmakers should not take advantage of non-public information. His comments were circulated following the Senate vote.
Supporters of the measure pointed to ethical concerns tied to prediction markets. Senators usually get access to confidential or prior information. This causes possible dangers in cases where financial agreements are based on events in the future.
Senate Democratic leader Chuck Schumer said the amendment was a clear decision. He stated that lawmakers should not profit from events such as elections or economic disruptions. He also said that it might be necessary to impose wider limits.
The existing regulation is limited to senators. It does not apply to House members, congressional aides, or other federal employees. It also does not address stock trading by lawmakers, which remains under scrutiny.
House Push Builds as Industry Supports Senate Ban
Republican Representative Ashley Hinson said that she would introduce a similar proposal in the House. Her statement came shortly after the Senate vote. The proposal would seek to increase the limitations on House members.
The decision is supported by industry participants. Kalshi CEO Tarek Mansour said that the site has blocked members of Congress already. He also said that prediction markets might be more trusted by codifying the rule.
Polymarket supported the measure as well. The exchange claimed that its policies already ban insider trading and such activities. It noted that formal regulation would assist in standardizing practices in the field of prediction markets.
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