The Senate unanimously passed a resolution on Thursday that bans senators, officers, and staff from participating in prediction markets like Polymarket and Kalshi. The resolution, introduced by Sen. Bernie Moreno (R-Ohio), takes effect immediately.
The change to the Senate's standing rules prevents lawmakers from entering financial agreements where the "outcome depends on whether a specific event does or does not happen." In other words, no more betting on whether a bill passes, a war starts, or a politician resigns.
"Serving in Congress should never be about finding new ways to profit; it should be about delivering results for the American people," Moreno said. "Senators have no business engaging in speculative activities like prediction markets while collecting a taxpayer-funded paycheck, period."
Kalshi CEO Tarek Mansour applauded the decision, saying, "This is a great step to increase trust in our markets by making it an industry standard. Now, let's pass this in the House!"
The unanimous passage comes amid intense scrutiny of prediction markets. Last week, a U.S. soldier was charged with using classified information to profit on a Polymarket bet linked to the capture of Venezuela's ousted leader, Nicolás Maduro. Iran war-related bets have also drawn attention: blockchain analysis revealed six suspected insider accounts made $1.2 million at the exact time of U.S. strikes on Iran. That prompted Sen. Chris Murphy (D-Conn.) to introduce legislation banning war betting. A recent report found that low-probability bets in war markets win at more than triple the rate prices suggest they should, indicating insiders may be profiting significantly.
