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The US Senate has swiftly moved to prohibit its members and staff from participating in prediction markets, citing risks of insider trading and maintaining public trust amid rising industry scrutiny.<\/p>\n<\/div>\n
The US Senate has moved to bar its own members and staff from taking part in prediction markets, approving a bipartisan resolution by voice vote that took effect immediately. The step is aimed at stopping lawmakers and aides from betting on outcomes that could be influenced by information they encounter in office, including political, economic and military developments.<\/p>\n
The measure was introduced by Republican Senator Bernie Moreno of Ohio, who argued that senators should not be profiting from speculative markets while drawing public salaries. Speaking to the Associated Press, he said lawmakers have no business using prediction markets and warned that any hint of trading on non-public knowledge weakens public confidence in Congress. According to AP, the resolution was strengthened by Democratic Senator Alex Padilla of California, whose amendment extended the ban to Senate staff and officers as well as elected members.<\/p>\n
Senate Democratic Leader Chuck Schumer backed the move, calling for similar action in the House of Representatives and across the executive and judicial branches. The Washington Post reported that the vote came amid wider concern about the way privileged information could be converted into private gain, especially after recent enforcement actions and controversial trading patterns tied to geopolitics and military events.<\/p>\n
The pressure has been building as prediction markets have expanded quickly through platforms such as Polymarket and Kalshi, which let users wager on everything from elections to conflicts abroad. Reuters-style reporting from the sources says the industry has also drawn scrutiny for cases involving alleged insider advantage, including a US Army soldier charged by the Commodity Futures Trading Commission and political candidates fined by Kalshi for betting on their own races. Even so, the platforms have publicly supported the Senate\u2019s decision, with Kalshi\u2019s chief executive calling it a useful step and Polymarket saying its own rules already prohibit the conduct. President Donald Trump has also commented on the broader rise of betting markets, describing the world as increasingly casino-like.<\/p>\n
The Senate\u2019s action does not resolve the wider debate over financial conduct in Washington. For years, lawmakers have argued over whether members of Congress should be allowed to trade individual stocks, and critics say the same logic applies to prediction markets whenever official access can provide an edge. Supporters of broader reform now want the new restriction to become a model for other branches of government.<\/p>\n
Inspired by headline at:<\/strong> [1]<\/a><\/sup><\/p>\n Sources by paragraph:<\/strong><\/p>\n\n