US Senate Prohibits Prediction Market Bets for Members and Staff

(AsiaGameHub) –   The U.S. Senate has implemented an immediate prohibition on prediction market activities for senators and their staff, following renewed concerns regarding trades linked to political events, military actions, and non-public government information. The measure was approved unanimously without a recorded vote.

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Key Details

• The Senate’s ban extends to its members, staff, and officers.
• Senator Bernie Moreno initiated the resolution, which Senator Alex Padilla subsequently expanded to encompass staff.
• Both Kalshi and Polymarket have expressed support for the restriction.

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Washington Enhances Prediction Market Regulations

Prediction markets are now subject to a new directive in Washington. Senators and their staff are no longer permitted to engage in trading on platforms that allow users to place wagers on real-world occurrences, ranging from election results to foreign policy developments.

Senator Bernie Moreno championed this rule amid growing apprehension that officials might leverage sensitive information for personal financial benefit. He stated, “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.”

The Senate’s action was prompted by several reports concerning prediction markets that raised significant ethical questions. One notable instance involved a U.S. Army soldier accused of using classified information to profit from a market related to Venezuelan politics. Other reports highlighted rapid trading activity surrounding military and geopolitical events, including those connected to Iran.

Kalshi itself has faced scrutiny over political betting within its platform. The company recently fined and suspended three congressional candidates after they placed trades on their own electoral races.

Despite these issues, the two most prominent prediction market operators have endorsed the Senate’s decision. Kalshi CEO Tarek Mansour described it as a “great step to increase trust in our markets by making it an industry standard.”

Polymarket also voiced its support for the rule, commenting, “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.”

The House of Representatives may soon follow suit. Representative Ashley Hinson has indicated her intention to introduce a similar resolution, and other lawmakers have also advocated for broader limitations on prediction market trading by government officials.