Senate Bans Senators, Staff From Trading on Prediction Markets

The U.S. Senate unanimously amended its chamber rules Thursday to prohibit senators and their staff from trading on prediction markets. The restriction will be enforced internally by the Senate and does not carry the force of law.

Republican Senator Bernie Moreno of Ohio sponsored the resolution and 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 resolution adds an explicit ban on participation in prediction market trading for members and staff. Violations are to be addressed by senators under the chamber’s existing oversight procedures. Because the change is a Senate rule, it does not need approval by the House or a presidential signature to take effect.

Several bills in Congress would create legal prohibitions on trading by federal officials. 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 to prohibit senior executive-branch officials from participating in prediction markets. Representatives Blake Moore and Salud Carbajal have proposed a bipartisan measure aimed at preventing insider trading tied to sensitive military information or efforts to influence democratic processes. Other proposals seek to stop platforms from offering markets linked to sports betting or to outcomes such as terrorism, assassination, war or an individual’s death.

Lawmakers increased scrutiny after reports of anonymous bettors making profitable trades moments before major announcements. Federal prosecutors last week charged U.S. Army Special Forces Master Sgt. Gannon Ken Van Dyke with insider trading tied to the ouster of Venezuelan President Nicolás Maduro. A civil complaint filed by the Commodity Futures Trading Commission alleges Van Dyke profited more than $404,000 by trading on markets tied to the operation, which prosecutors say he helped plan and execute.

Companies that operate prediction markets have defended their practices. Olivia Chalos, deputy chief legal officer at Polymarket, 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 said the platform shares a commitment to national security and market integrity.

State and private organizations have limited employee participation in prediction markets. Illinois Governor J.B. Pritzker issued an order barring state employees from using inside information to wager on prediction platforms, and a national public broadcaster directed its editorial staff not to engage in such trading. Senator Richard Blumenthal has accused Polymarket of allowing users to profit from national security information and criticized the platform for opening a market tied to the reported rescue of a U.S. service member.

The Senate rule change is the latest action by policymakers addressing risks tied to prediction markets. Enforcement of the new Senate rule will rest with members and their staffs, while broader federal restrictions would require passage of legislation to become binding law.