Senate Unanimously Bans Members From Prediction Market Trading

Senate Resolution Passes Unanimously

U.S. senators are now barred from trading on prediction markets following the unanimous passage of S. Res. 708 on Thursday, according to the Senate Press Gallery. The measure became "effective immediately" and amends the Senate's standing rules, which govern member conduct.

Sen. Bernie Moreno (R-Ohio) introduced the resolution last week. Moreno stated his resolution is intended to block insider trading, which has become a key concern in Washington DC. "Serving in Congress is an honor, not a side hustle," Moreno said. "Americans deserve to know that their leaders are here for the right reason!"

Insider Trading Concerns and Catalyst

The resolution follows concerns raised in January when lawmakers alarmed bells after a Polymarket account wagered that Venezuelan President Nicolás Maduro would be "out" by the end of that month, netting $400,000. Prosecutors arrested active-duty U.S. Army Soldier Gannon Ken Van Dyke, 38, who allegedly used confidential information to place that bet. Van Dyke has since pleaded not guilty.

Industry Response and Existing Safeguards

Kalshi, one of the biggest prediction markets, has said it has taken steps to weed out insider trading and has publicly disclosed cases over the past few months. Last week, the platform opened three insider cases involving candidates and fined and suspended them for making bets on their own races.

Kalshi founder Tarek Mansour called the resolution a "great step." "Now, let's pass this in the House!" Mansour said.

Polymarket, too, has introduced technological guards meant to prevent insiders from trading and provide market integrity. On X, Polymarket said it fully supported the legislative measure. "Our Rulebook & Terms of Service already prohibit such conduct, but codifying this into law is a step forward for the industry," the platform said. "Happy to help move this forward however we can."

State-Level Actions

On the state level, New York and Illinois have issued executive orders over the past few days blocking state employees from using information that is not public to place bets on prediction markets.