TLDR
- A unanimous Senate vote enacted an immediate prohibition on prediction market participation for senators and their staff
- Ohio Republican Senator Bernie Moreno sponsored the resolution that reformed Senate regulations instantly
- The measure followed criminal charges against a special forces operative who allegedly wagered on Polymarket using classified intelligence
- House Representative Ashley Hinson announced plans to bring comparable legislation to the lower chamber
- Major prediction platforms expressed support for the congressional trading restrictions
On Thursday, the United States Senate enacted a sweeping prohibition preventing lawmakers and their employees from engaging with prediction markets. Senator Bernie Moreno, an Ohio Republican, brought forth the resolution that altered Senate regulations with immediate force.
Moreno argued that elected officials receiving government salaries have no legitimate reason to participate in speculative betting activities. The updated regulation prohibits any contract or transaction connected to forecasting specific future outcomes.
The legislative action arrived on the heels of April 23 criminal charges filed against a special forces operative accused of exploiting classified intelligence for Polymarket wagers. The military member, connected to an operation targeting former Venezuelan leader Nicolás Maduro, maintains his innocence.
Congressional leaders additionally voiced alarm over suspicious wagering patterns related to potential conflict with Iran. Senate Majority Leader Chuck Schumer described the prohibition as common sense policy.
“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.
Unified Congressional Backing
The measure achieved passage through unanimous consent, indicating zero senatorial opposition. Support transcended party boundaries, though Schumer advocated expanding 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 House member Ashley Hinson announced via social media platform X her intention to bring parallel legislation before the House of Representatives.
Platform Reactions
Polymarket, among the most prominent prediction market operators, issued a statement endorsing the Senate’s decision. The platform emphasized that its existing user agreements already prohibit such behavior while characterizing the legislation as “a step forward for the industry.”
Polymarket operates under a 2022 settlement with the CFTC that technically restricts its domestic US operations.
Tarek Mansour, who leads competing platform Kalshi as co-founder and CEO, similarly praised the resolution. He confirmed that Kalshi maintains existing blocks against congressional members and actively enforces insider trading prevention measures.
Political wagering has experienced explosive growth in recent election cycles. Multiple candidates have already incurred sanctions for placing bets on their own electoral contests.
The Senate resolution spans just 14 lines. Its swift enactment stands in stark contrast to ongoing delays surrounding comprehensive cryptocurrency regulatory frameworks.
At the moment of the vote, Polymarket traders assessed Democratic chances of securing Senate control in November’s elections at approximately 50 percent.
