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The US Senate has unanimously approved a measure banning its members from trading on prediction markets, marking the first federal effort to limit potential insider trading on platforms such as Polymarket and Kalshi.
The proposal, reported by CNBC, would prohibit senators and their staff from placing bets on events tied to public policy, elections, and geopolitical developments. The House has not adopted a similar restriction as of yet.
The move follows a series of incidents that raised concerns about possible misuse of nonpublic information.
Congressional candidates suspended from Kalshi
On April 22, Kalshi said it suspended the accounts of a US Senate candidate and two House candidates for trading on their own campaigns. The platform said the suspensions will last five years and include financial penalties.
In a separate case, federal authorities arrested US Army Special Forces soldier Master Sgt. Gannon Ken Van Dyke on April 23. Prosecutors allege Van Dyke used knowledge tied to a mission involving Venezuelan leader Nicolás Maduro to place trades that generated nearly $410,000. He has pleaded not guilty and faces up to 60 years in prison if convicted.
Concerns have also been raised about trading activity surrounding major geopolitical events, though details of those trades have not been fully verified.
Industry reaction and next steps
Both Kalshi and Polymarket said they support the Senate’s action. Kalshi CEO Tarek Mansour posted on X that it was right move.
“I applaud the Senate for passing this resolution to ban senators and their offices from trading on prediction markets.”
He said the company already restricts accounts tied to members of Congress.
Polymarket said its rules also prohibit such activity, but it welcomed the legislation as “a step forward for the industry.”
Senate Minority Leader Chuck Schumer urged the House to adopt similar rules.
“Members and staff representing the public should never be able to gamble on wars, economic crises, or elections. The possibility that a member’s vote could be influenced by a bet is reason enough to slam this door shut.”
