Senate bans senators, staff from prediction market trading

On Thursday the U.S. Senate voted unanimously to change chamber rules and bar senators and their staff from trading on prediction markets. The resolution is enforced by the Senate itself and does not create federal law or require approval by the House or the president.

Republican Senator Bernie Moreno of Ohio, who sponsored the measure, wrote 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 vote followed reports of timely, profitable bets tied to major government actions that drew federal and legislative scrutiny. Last week federal prosecutors charged U.S. Army Special Forces Master Sergeant Gannon Ken Van Dyke, alleging he used confidential knowledge of the ouster of Venezuelan President Nicolás Maduro to place trades on Polymarket. Prosecutors say Van Dyke took part in planning and executing the operation known as Operation Absolute Resolve. A separate civil complaint filed by the Commodity Futures Trading Commission alleges he gained more than $404,000 from those trades.

Members of Congress have introduced several bills to restrict prediction market trading by officials. In January Representative Ritchie Torres proposed the Public Integrity in Financial Prediction Markets Act of 2026 to bar federal officials from trading on such platforms. In March Senators Jeff Merkley and Amy Klobuchar filed legislation to prohibit senior executive branch officials from participating. Representatives Blake Moore and Salud Carbajal put forward a bipartisan measure targeting insider trading that could exploit military secrets or interfere with democratic processes. Other proposals would ban markets tied to sports betting or to events such as terrorism, assassination, war or the death of an individual.

State and private employers have updated rules as well. Illinois Governor J.B. Pritzker issued a prohibition on state employees using insider information to bet on prediction markets.

Polymarket responded through its deputy chief legal officer, Olivia Chalos, writing on X 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.” She added that the company shares lawmakers’ “commitment to national security and market integrity.”

The Senate resolution establishes an internal accountability mechanism for members and staff. Federal agencies and courts retain authority for criminal investigations and regulatory enforcement while lawmakers consider additional legislation and regulators review platform practices.