Senate Bans Senators, Staff From Trading on Prediction Markets

The Senate on Thursday unanimously amended its chamber rules to bar senators and their staff from trading on prediction markets. The resolution makes such trading prohibited conduct enforced by the Senate and takes effect without approval from the House or the president.

Sen. Bernie Moreno of Ohio, sponsor of the resolution, posted on X: “Serving in Congress is an honor, not a side hustle. Americans deserve to know that their leaders are here for the right reason!”

The rule change followed criminal charges filed last week by the Justice Department against U.S. Army Special Forces Master Sergeant Gannon Ken Van Dyke. Prosecutors allege Van Dyke used nonpublic knowledge of an operation to remove Venezuelan President Nicolás Maduro, known as Operation Absolute Resolve, to place bets on prediction markets including Polymarket. A civil complaint from the Commodity Futures Trading Commission says he made more than $404,000 in illicit profits.

Several members of Congress have introduced legislation aimed at prediction markets. Representative Ritchie Torres proposed 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 a bill to prohibit senior executive branch officials from trading on prediction markets. Representatives Blake Moore and Salud Carbajal sponsored a bipartisan bill targeting insider trading tied to sensitive military secrets and democratic processes. Other proposals would bar markets on sports betting or outcomes linked to terrorism, assassination, war or an individual’s death.

Illinois Governor J.B. Pritzker issued a directive banning state employees from using insider information to place bets on prediction markets. Some private employers have also restricted employee participation on the platforms.

Polymarket’s deputy chief legal officer, Olivia Chalos, wrote on X that the company “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 added the platform shares a commitment to national security and market integrity. Sen. Richard Blumenthal criticized Polymarket, saying users were able to profit from national security secrets and pointing to a market related to a U.S. soldier rescue in Iran.

Prediction markets let users bet on the likelihood of political events, elections and other outcomes. Lawmakers and regulators have flagged a pattern of profitable trades placed shortly before major announcements, prompting scrutiny. The Senate’s rule restricts trading by members and staff while Congress and regulators consider broader legal and regulatory changes.