Senate bans senators, staff from prediction markets

On Thursday the U.S. Senate amended its chamber rules to ban senators and their staff from trading on prediction markets. The measure passed unanimously and will be enforced under the Senate’s internal procedures.

The resolution is a change to Senate rules, not a federal law, and does not require approval by the House or the president. Alleged violations will be handled inside the chamber.

Sen. Bernie Moreno, R-Ohio, sponsored the resolution and called public service “an honor, not a side hustle,” adding that Americans deserve leaders who act for the right reasons.

Lawmakers cited a federal insider-trading probe tied to the ouster of Venezuelan president Nicolás Maduro. Federal prosecutors charged U.S. Army Special Forces Master Sgt. Gannon Ken Van Dyke, accusing him of using knowledge of Operation Absolute Resolve-the operation that led to Maduro’s removal-to trade on Polymarket and other platforms. A separate civil complaint from the Commodity Futures Trading Commission alleges Van Dyke made more than $404,000 in illicit profits.

Investigators flagged anonymous bettors placing profitable trades shortly before major public announcements, prompting concern that nonpublic information was being used for profit.

Several bills in Congress aim to limit prediction-market activity. Rep. Ritchie Torres introduced the Public Integrity in Financial Prediction Markets Act of 2026 to bar federal officials from trading on prediction platforms. Senators Jeff Merkley and Amy Klobuchar filed legislation to prohibit senior executive branch officials from trading. Representatives Blake Moore and Salud Carbajal proposed bipartisan legislation focused on preventing insider trading tied to military secrets and democratic processes. Other draft bills would bar markets related to sports betting, terrorism, assassination, war or the death of an individual.

State and private employers have also restricted employee activity. Illinois Gov. J.B. Pritzker forbade state employees from using insider information on prediction sites, and a national news organization issued a directive barring editorial staff from participating.

Polymarket’s deputy chief legal officer, Olivia Chalos, posted on social media that the platform “operates in full compliance with applicable law,” adding that its insider-trading rules reflect standards set by the CFTC and the courts.

Sen. Richard Blumenthal criticized Polymarket for permitting markets he says allowed users to profit from national security secrets and for opening a market tied to the rescue of a U.S. soldier in Iran.

With the Senate ban now in place, congressional leaders continue to evaluate possible federal restrictions and enforcement mechanisms. Federal prosecutors and the CFTC are pursuing penalties in ongoing cases, and lawmakers indicated additional federal rules could follow if private and institutional limits are judged insufficient.