Senators Ban Themselves From Prediction Markets as Insider Trading Concerns Grow
Senators voted on April 30 to restrict themselves from prediction markets as there is an increasing concern of insider trading by government officials, CNBC reports.
The resolution was spearheaded by Ohio Senator Bernie Moreno, and immediately prohibits Senators and staff from the markets.
The platforms, like Kalshi and Polymarket, are quickly growing in popularity as a way to essentially bet on the results on scores of outcomes, from sporting events to when international war will be waged.
“United States Senators have no business engaging in speculative activities like prediction markets while collecting a taxpayer-funded paycheck, period,” Moreno, a Republican, said in a statement via Politico.
Polymarket quickly responded to the news on X, writing, “We’re in full support of this. 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.”
Chuck Schumer, the Democratic minority leader, praised the fact that “the Senate is moving swiftly,” and encouraged the House of Representatives to follow suit.
“Speaker Johnson should immediately do the same thing in the House,” Schumer said of the restriction.
Also on Thursday, the Commodity Futures Trading Commission was called on by a group of Democratic members of Congress to issue a rule “that prevents insider trading and corruption in the market and prohibits event contracts on the outcome of elections, war and military actions in the U.S. or abroad, sports, and government actions without a valid economic hedging interest.”
This movement comes in the days following several accusations of political insider trading. On April 22, Kalshi announced that it had suspended and fined a U.S. Senate candidate and two candidates running for the House of Representatives because it appears they traded on their own campaigns.
The resolution was spearheaded by Ohio Senator Bernie Moreno, and immediately prohibits Senators and staff from the markets.
The platforms, like Kalshi and Polymarket, are quickly growing in popularity as a way to essentially bet on the results on scores of outcomes, from sporting events to when international war will be waged.
“United States Senators have no business engaging in speculative activities like prediction markets while collecting a taxpayer-funded paycheck, period,” Moreno, a Republican, said in a statement via Politico.
Polymarket quickly responded to the news on X, writing, “We’re in full support of this. 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.”
Chuck Schumer, the Democratic minority leader, praised the fact that “the Senate is moving swiftly,” and encouraged the House of Representatives to follow suit.
“Speaker Johnson should immediately do the same thing in the House,” Schumer said of the restriction.
Also on Thursday, the Commodity Futures Trading Commission was called on by a group of Democratic members of Congress to issue a rule “that prevents insider trading and corruption in the market and prohibits event contracts on the outcome of elections, war and military actions in the U.S. or abroad, sports, and government actions without a valid economic hedging interest.”
This movement comes in the days following several accusations of political insider trading. On April 22, Kalshi announced that it had suspended and fined a U.S. Senate candidate and two candidates running for the House of Representatives because it appears they traded on their own campaigns.