U.S. Senate Bans Members From Trading On Prediction Markets
David Genge Published 04/05/2026
Members of the U.S. Senate and their staff will no longer be legally allowed to make trades on prediction markets. A Senate resolution to change the rules of the Senate to prohibit this activity was passed unanimously. The ruling goes into effect immediately.
This resolution applies only to the Senate. However, there is a movement afoot to introduce a similar resolution in the House. The decision comes as concerns about insider trading within government organizations, to take advantage of their access to privileged information, are becoming a growing concern. A U.S. special forces soldier recently became the first person to be charged with insider trading involving prediction markets.
Senate moves quickly to halt any potential insider trading
There is increasing scrutiny about government officials taking advantage of insider trading on prediction market sites. This has led to swift action in the U.S. Senate. The resolution was passed unanimously without the need for a roll call.
It was Republican Senator Bernie Moreno of Ohio who introduced the resolution.
“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,” Moreno said on the Senate floor.
“So it’s extremely important that the public know that from this day forward, there is no chance that any member of Congress, member of the Senate, in this case . . . be involved in any prediction market whatsoever.
“It sets a standard. And I think the last thing anybody here who’s serving wants to do is be referred to Ethics for an investigation that would be the end of their political career.”
Concerns about insider trading became real last week. A U.S. special forces soldier is facing indictment for using classified information to win a trade. He won more than $400,000 on the U.S. removal of Venezuelan president Nicolas Maduro.
The House is planning to make a similar resolution
This resolution only applies to the Senate. Iowa Congresswoman Ashley Hinton was posting on X that they would be holding a similar vote in the House of Representatives.
"I am leading this effort in the House," Hinson posted. "Let’s get it done."
Hinson is part of a bipartisan group of colleagues cosponsoring the Preventing Real-time Exploitation and Deceptive Insider Congressional Trading (PREDICT) Act. The bill aims to ban senior federal government officials, including Members of Congress, from engaging in insider prediction-market trading.
“I can’t think of anything swampier than Members of Congress or other federal officials using insider knowledge to gamble on prediction markets," Hinson said in a statement. "Americans should be able to trust that their representatives aren’t making money on current events."
Prediction market sites are supporting this Senate move
Both of the major prediction market sites were quick to respond favorably to this Senate resolution.
Polymarket posted praise of the ruling on the social media site X.
“We’re in full support of this," the post read. "Our Rulebook & Terms of Service already prohibit such conduct, but codifying this into law is a step forward for the industry.”
Kalshi co-founder Tarik Mansour was also delivering a positive response to the resolution on the company's X feed.
"Kalshi already proactively blocks members of Congress and enforces against insider trading," Mansour's post noted. "This is a great step to increase trust in our markets by making it an industry standard. Now, let’s pass this in the House!"