Senate Votes to Ban Senators and Staff From Using Prediction Markets

TL;DR

The U.S. Senate unanimously passed a resolution banning senators and their staff from trading on prediction markets to prevent insider trading. Introduced by Senator Bernie Moreno, this is the first major regulatory action aimed at government officials' participation in such markets.

Key points

U.S. Senate passed S. Res. 708 unanimously
Ban targets insider trading from non-public government information
First major regulation on government officials' prediction market participation

Mentioned in this story

Bernie MorenoU.S. SenateChuck SchumerNicolás MaduroGannon Ken Van Dyke

In brief

The U.S. Senate unanimously passed S. Res. 708, banning senators from trading on prediction markets.
Republican Senator Bernie Moreno of Ohio introduced the resolution targeting potential advantages from non-public government information.
The ban represents the first major regulatory action specifically prohibiting government officials from prediction market participation. The U.S. Senate has banned senators from trading on prediction markets, with the chamber passing a resolution targeting potential insider trading advantages from non-public government information. The Senate resolution prohibits senators and their staff from participating in prediction markets where users can bet on political outcomes, policy decisions, and other events that lawmakers may have advance knowledge of through their official duties. "United States Senators have no business engaging in speculative activities like prediction markets while collecting a taxpayer-funded paycheck, period," said Sen. Bernie Moreno (R-Ohio)—who introduced the measure—in a statement. "Serving in Congress is an honor, not a side hustle." The unanimous passage indicates bipartisan agreement that such trading poses ethical concerns similar to traditional stock trading restrictions for government officials. (Disclaimer: *Decrypt*’s parent company Dastan operates a prediction market platform, Myriad.) Major prediction market platforms are backing the Senate's move. Kalshi founder Tarek Mansour called the action a "great step" in an X post, and urged lawmakers to expand the ban. "Now, let's pass this in the House!" Mansour said. “We’re in full support of this,” Polymarket wrote on X. “Our Rulebook & Terms of Service already prohibit such conduct, but codifying this into law is a step forward for the industry. Happy to help move this forward however we can.”

I applaud the Senate for passing this resolution to ban Senators and their offices from trading on prediction markets.

Kalshi already proactively blocks members of congress and enforces against insider trading. This is a great step to increase trust in our markets by making it…

Q&A

What is the significance of the Senate's ban on prediction market trading?

The ban signifies a bipartisan effort to prevent potential insider trading by government officials, ensuring ethical conduct while serving in Congress.

Who introduced the resolution to ban senators from using prediction markets?

The resolution was introduced by Republican Senator Bernie Moreno of Ohio.

What prompted the Senate to take action against prediction market trading?

The Senate's action follows high-profile insider trading incidents, including a case involving a soldier who allegedly used confidential information to place bets.