Senate bans members and staff from prediction-market trading

On Thursday the Senate unanimously adopted a resolution that bars senators and their staff from trading on prediction markets. The change updates chamber rules and makes violations a matter for Senate discipline.

The resolution does not require approval by the House or the president and does not itself create a federal crime. Federal prosecutors and regulators retain separate authority to investigate and bring civil or criminal actions where they find evidence of illegal conduct.

Sponsor Senator Bernie Moreno, R-Ohio, said the ban aims to protect public trust, adding in a statement, “Serving in Congress is an honor, not a side hustle.” The vote was unanimous.

Lawmakers pointed to recent allegations of insider trading on prediction platforms as a reason for action. Federal prosecutors charged U.S. Army Special Forces Master Sergeant Gannon Ken Van Dyke with using advance knowledge of the ouster of Venezuela’s president to place bets on a market platform. Prosecutors allege Van Dyke, who took part in planning and executing the operation known as Operation Absolute Resolve, made more than $404,000 in illicit gains. The Commodity Futures Trading Commission has filed a related civil complaint.

Several members of Congress have filed bills to limit or restrict trading by public officials. Representative Ritchie Torres introduced the Public Integrity in Financial Prediction Markets Act of 2026 to bar federal officials from trading on prediction markets. Senators Jeff Merkley and Amy Klobuchar proposed legislation to prohibit senior executive-branch officials from similar activity. Representatives Blake Moore and Salud Carbajal sponsored a bipartisan bill focused on preventing insider trading tied to military secrets and democratic processes. Other proposals seek to ban markets tied to terrorism, assassination, war or an individual’s death and to limit products that resemble sports betting.

State and private employers have also issued restrictions. Illinois Governor J.B. Pritzker issued guidance barring state employees from using insider information to place bets on prediction platforms, and several organizations have told staff not to trade on those sites to avoid conflicts of interest.

A leading market operator defended its practices. Olivia Chalos, deputy chief legal officer at Polymarket, wrote that the platform “operates in full compliance with applicable law, and our insider trading rules are the exact lines that the CFTC and courts draw for derivatives markets,” and said the company shares concerns about national security and market integrity. Senator Richard Blumenthal has criticized at least one platform, saying it allowed users to profit from sensitive national security information and citing a market that permitted bets on the rescue of a U.S. soldier as an example.

The Senate rule change establishes an internal ethical restriction for members and staff while related legislation and regulatory reviews proceed at the federal level.