Senate bans senators, staff from prediction market trades

The Senate voted unanimously Thursday to change its chamber rules and bar senators and their staff from trading on prediction markets. The rule is nonbinding and will be enforced internally by members of the Senate rather than through criminal law.

Lawmakers framed the ban as a measure to prevent use of nonpublic information to place bets on elections, coups, military actions and other national-security events. The resolution does not require approval by the House or the president.

Senator Bernie Moreno of Ohio sponsored the resolution and wrote on social media that “Serving in Congress is an honor, not a side hustle,” adding that Americans deserve confidence their leaders act for the right reasons.

Several bills in Congress seek broader or statutory restrictions. Representative Ritchie Torres introduced the Public Integrity in Financial Prediction Markets Act of 2026 to bar federal officials from trading on such platforms. Senators Jeff Merkley and Amy Klobuchar filed legislation aimed at preventing senior executive branch officials from participating in prediction markets. Representatives Blake Moore and Salud Carbajal advanced a bipartisan proposal focused on insider trading related to sensitive military information and democratic processes.

Federal prosecutors recently brought criminal charges in a case that has intensified scrutiny of prediction markets. Authorities allege U.S. Army Special Forces Master Sergeant Gannon Ken Van Dyke used classified knowledge of an operation to remove Venezuelan president Nicolás Maduro to make trades on a prediction market. A Commodity Futures Trading Commission civil complaint and a Justice Department criminal filing say the trades produced more than $404,000 in alleged illicit gains. Prosecutors say Van Dyke participated in planning and executing the operation known as Operation Absolute Resolve.

Lawmakers began investigating prediction markets after anonymous accounts made profitable trades shortly before major public announcements, prompting questions about possible insider activity. That pattern of trades prompted the Senate resolution and the separate bills now under consideration.

Some state governments and private organizations have already issued internal rules restricting employees from trading on prediction platforms or from using inside information to place bets. Officials and regulators are also considering limits on the types of markets that can be offered, including proposals to ban markets tied to terrorism, assassination, war, an individual’s death and certain sports wagers.

Polymarket, a platform that hosts prediction markets, responded through deputy chief legal officer Olivia Chalos, saying the company operates in compliance with applicable law and that its insider-trading rules follow the lines drawn by the Commodity Futures Trading Commission and the courts. She added the platform shares concerns about national security and market integrity.

Congressional activity and high-profile investigations have increased pressure on regulators to clarify how existing securities and derivatives rules apply to online prediction platforms. The Senate’s internal ban adds a chamber-level enforcement mechanism while legislative and regulatory work continues.