Senate bans lawmakers, staff from trading on prediction markets

The Senate unanimously revised its rules Thursday to bar senators and their staff from trading on prediction markets. The resolution will be enforced by the Senate through its own disciplinary procedures and does not create a criminal or civil law. It does not require approval by the House or the president.

The change followed a Justice Department insider‑trading charge tied to the ouster of Venezuelan President Nicolás Maduro. Prosecutors last week charged U.S. Army Special Forces Master Sergeant Gannon Ken Van Dyke, alleging he used privileged information from an operation known as Operation Absolute Resolve to place market trades. A separate civil complaint filed by the Commodity Futures Trading Commission estimated illicit profits of more than $404,000.

Senators pointed to instances of timely trades ahead of major announcements while debating the resolution. The rule update prohibits members and their staff from using or benefiting from prediction‑market trades, and any breaches will be handled within the Senate.

Congressional lawmakers have introduced several bills to restrict prediction‑market trading by officials. Representative Ritchie Torres introduced the Public Integrity in Financial Prediction Markets Act of 2026 in January to bar federal officials from trading on these platforms. In March, Senators Jeff Merkley and Amy Klobuchar proposed legislation to prohibit senior executive branch officials from participating in prediction markets. Representatives Blake Moore and Salud Carbajal drafted a bipartisan bill aimed at preventing misuse of classified military information and interference in democratic processes.

Other proposals would stop markets from taking wagers tied to sports outcomes, terrorism, assassination, war or an individual’s death. State and private employers have also issued restrictions for staff. Illinois Governor J.B. Pritzker barred state employees from using nonpublic information to bet on prediction markets, and several companies and institutions have adopted similar policies.

Polymarket, a prediction platform at the center of recent complaints, defended its practices. Olivia Chalos, the company’s deputy chief legal officer, said the platform “operates in full compliance with applicable law” and that its insider trading rules align with standards applied to derivatives markets. She added the company shares a commitment to national security and market integrity.

Senator Bernie Moreno, the Ohio Republican who sponsored the resolution, wrote on X that serving in Congress “is an honor, not a side hustle” and that “Americans deserve to know that their leaders are here for the right reason!” The resolution passed the Senate floor vote without opposition.

The new rule takes effect immediately for members and staff under Senate enforcement. It does not address potential criminal or civil remedies for outside actors who trade on nonpublic information while Congress continues work on statutory measures.