Senate Passes Bill Preventing Members Trading On Prediction Markets

Members of the US Senate are now prohibited from trading on prediction market platforms such as Kalshi and Polymarket, after a bipartisan bill aimed at tackling insider trading concerns was passed.

According to reports, the measure was approved unanimously and takes immediate effect, with Senate staffers also included in the ban.

The legislation follows recent scrutiny around prediction markets, including action taken by Kalshi to fine and suspend three US politicians for trading on their own election outcomes.

Separately, in an unrelated case, a serving US soldier has pleaded not guilty to charges brought by the Justice Department, accused of using insider knowledge linked to an operation involving former Venezuelan president Nicolás Maduro to generate profits of more than $400,000 on Polymarket.

Insider trading targeted

Introducing the bill, Senator Bernie Moreno said:

“Engaging in any way in a prediction market or trying to place bets where we might have inside information deteriorates our confidence that our constituents have in us.”

Senate Minority Leader Chuck Schumer added:

“We must never allow Congress to turn into a casino where members representing the public can gamble on wars or economic crises or elections.

“That would destroy the very principle of representative government.” 

Senator John Curtis, a co-sponsor of the Prediction Markets are Gambling Act introduced last month, wrote on X:

“Proud to see the Senate unanimously adopt a rule today prohibiting Senators and staff from trading on prediction markets. Next up, prohibiting all government officials from using insider information to bet on a prediction market contract.”

Platforms welcome move

Kalshi CEO and co-founder Tarek Mansour said on X:

 “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 an industry standard.”

Polymarket also voiced its backing in a statement, noting the bill has its “full support” and that the company is “happy to assist in progressing it further.”