- The Senate passed a unanimous resolution banning members and staff from prediction market trades.
- Army soldier allegedly used classified Maduro raid intel to win $410,000 on Polymarket bets.
- Kalshi and Polymarket both welcomed the Senate ban, saying their rules already prohibit it.
The United States Senate passed a unanimous resolution Thursday banning its members and staff from trading on prediction markets, responding to a series of insider trading scandals that have put the fast-growing industry under intense scrutiny in recent weeks.
The measure takes effect immediately as a change to Senate rules, requiring no further legislation. Senator Bernie Moreno of Ohio, who sponsored the resolution, said the stakes for any member who ignores it are clear.
“It sets a standard,” Moreno said after the vote. “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.”
The resolution was broadened by an amendment from Senator Alex Padilla of California to include Senate staff. Senate Minority Leader Chuck Schumer called the move a no-brainer, warning that allowing members to bet on wars, economic crises, or elections “would destroy the very principle of representative government.”
What Prompted It
Three incidents accelerated the push. On April 22, Kalshi suspended and fined one Senate candidate and two House candidates for betting on their own election outcomes.
The following day, Army Special Forces Master Sergeant Gannon Ken Van Dyke was indicted for allegedly using classified intelligence to place bets on Polymarket tied to the military operation that captured Venezuelan leader Nicolás Maduro, reportedly winning nearly $410,000.
Earlier this month, suspicious new accounts on Polymarket made well-timed bets on a US-Iran ceasefire date, generating significant profits before the White House warned staff against using private information to trade.
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Industry Response
Both major prediction market platforms welcomed the resolution. Kalshi CEO Tarek Mansour said his platform already blocks congressional members and enforces against insider trading, calling Thursday’s vote a great step toward making it an industry standard. “Now, let’s pass this in the House,” he said. Polymarket said it was in full support, describing the codification as a step forward for the sector.
Representative Ashley Hinson of Iowa said Thursday she would introduce a matching resolution in the House. Senators Todd Young and Elissa Slotkin have separately introduced broader legislation covering all federal officials.
One observation cutting through the goodwill came from crypto commentator Wendy O, who said the Senate banned prediction market trading while leaving stock trading untouched entirely.
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