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.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Gemini Secures Derivatives License, Targets Prediction Markets as Shares Surge
Gemini, the crypto exchange founded by Tyler and Cameron Winklevoss, has secured a derivatives license allowing it to expand into regulated derivatives and prediction markets, the fastest-growing sectors in crypto. The license approval has driven a surge in the company's
GateNews2h ago
Polymarket Taps Chainalysis to Police Insider Trading While Seeking $15 Billion Valuation and CFTC Approval
According to The Block, Polymarket has enlisted Chainalysis on Thursday to help police insider trading and market manipulation as the prediction market seeks to raise $400 million at a $15 billion valuation and gain approval from the Commodity Futures Trading Commission to relaunch in the U.S. marke
GateNews3h ago
a16z Crypto Urges SEC to Streamline Prediction Market Rules, Cites 30B Weekly Volume at Kalshi
According to Odaily, a16z Crypto recently submitted comments to the U.S. Securities and Exchange Commission (SEC) on proposed prediction market regulations. The firm highlighted rapid market growth, with Kalshi's weekly average trading volume increasing from 300 million to 3 billion dollars.
a16z C
GateNews3h ago
Polymarket Launches Prediction Market Today on When Epstein's Will Be Disclosed
According to Odaily Seer, Polymarket launched a new prediction market today (May 1) on whether Jeffrey Epstein's will or final written statement will be publicly disclosed. The market will resolve to "Yes" if any letter or written message written by Epstein and intended as a will is publicly disclos
GateNews4h ago
Polymarket Partners With Chainalysis to Combat Insider Trading
Polymarket has enlisted blockchain data firm Chainalysis to help police insider trading and "all types of fraud and market manipulation" as the prediction market seeks to raise $400 million and gain approval to relaunch in the U.S., according to a statement from Thursday. The company stated that the
CryptoFrontier6h ago
The US Senate unanimously passed S. Res. 708: banning senators from trading prediction markets, effective immediately
The U.S. Senate passed S. Res. 708 unanimously, immediately banning senators and their staff from trading in prediction markets such as Polymarket and Kalshi to eliminate insider-trading risk. The resolution follows a case in which members of a special forces unit used military secrets to bet on the market and earned about $490k, and the self-regulatory pledge has been upgraded into law. The House of Representatives and the executive branch, as well as state laws, may become the next focus.
ChainNewsAbmedia6h ago
