Key Points
- A unanimous Senate vote established new rules prohibiting senators and staff from accessing prediction markets
- The prohibition became effective instantly following approval by unanimous consent
- Ohio Republican Senator Bernie Moreno authored and introduced the resolution
- Federal charges were filed against a special forces soldier for leveraging classified intelligence on Polymarket
- Republican Representative Ashley Hinson plans to bring parallel legislation to the House
Thursday marked a historic moment as the US Senate achieved unanimous agreement on prohibiting all members and staff from engaging with prediction markets. The resolution, authored by Ohio Republican Senator Bernie Moreno, triggered an immediate modification to Senate regulations.
Moreno emphasized that elected officials should refrain from speculative trading activities while receiving compensation from taxpayer dollars. The updated rules prohibit members from entering contracts or transactions linked to outcomes of particular events.
The legislative action followed April 23 federal charges against a special forces soldier accused of exploiting classified intelligence to wager on Polymarket. The service member, connected to an operation targeting former Venezuelan President Nicolás Maduro, entered a not guilty plea.
Members of Congress expressed alarm over suspiciously timed wagers related to Iran military operations. Senate Democratic leader Chuck Schumer described the prohibition as obvious common sense.
“We must never allow Congress to turn into a casino where members representing the public can gamble on wars, or economic crises, or elections,” Schumer said on the Senate floor.
Cross-Party Alignment on the Measure
The resolution advanced through unanimous consent, indicating zero opposition from any senator. Members from both sides of the aisle endorsed the policy, with Schumer advocating for expanded coverage to include executive branch personnel and administration officials.
“The administration and its employees must apply these very same rules too,” Schumer said, pointing to what he called a “troubling affinity to corruption and self-dealing.”
Republican Representative Ashley Hinson announced via X platform her intention to bring forward comparable legislation in the House of Representatives.
Platform Operators Weigh In
Polymarket, a major player in the prediction market space, expressed complete backing for the Senate measure. The platform highlighted that its existing terms of service already prohibit such behavior while characterizing the legislation as “a step forward for the industry.”
Polymarket entered into a 2022 settlement with the CFTC and maintains restrictions on US-based operations.
Tarek Mansour, co-founder and CEO of competing platform Kalshi, similarly praised the resolution. He confirmed that Kalshi maintains existing blocks on Congressional members while actively enforcing insider trading prevention measures.
Prediction market participation has experienced significant expansion in recent years. Several candidates previously received sanctions for placing wagers on their own electoral contests.
The Senate measure spans 14 lines. Its swift passage stands in stark contrast to ongoing delays surrounding comprehensive crypto market structure bills.
At the time of the Senate vote, Polymarket probability indicators showed Democrats holding equal odds of securing Senate majority control in November elections.
