U.S. senators are now barred from trading on prediction markets following the unanimous passage of a resolution on Thursday.
The Senate agreed to pass S. Res. 708, making it "effective immediately," according to the Senate Press Gallery. The measure, introduced last week by Sen. Bernie Moreno (R-Ohio), amends the Senate’s standing rules, which govern member conduct.
Moreno said his resolution is intended to block insider trading, which has become a key concern in Washington DC. In January, lawmakers raised alarm bells after a Polymarket account wagered that Venezuelan President Nicolás Maduro would be "out" by the end of this month, netting $400,000, sparking concerns of inside information. Last week, prosecutors arrested active-duty U.S. Army Soldier Gannon Ken Van Dyke, 38, who allegedly used confidential information to place that bet. He has since pleaded not guilty.
One of the biggest prediction markets, Kalshi, has said it's taken steps to weed out insider trading and has publicly disclosed cases over the past few months. Last week, the platform opened three insider cases involving candidates and fined and suspended them for making bets on their own races. Polymarket, too, has introduced technological guards meant to prevent insiders from trading and provide market integrity.
On the state level, New York and Illinois have issued executive orders over the past few days blocking state employees from using information that is not public to place bets on prediction markets.
"Serving in Congress is an honor, not a side hustle," Moreno said. "Americans deserve to know that their leaders are here for the right reason!"
Kalshi founder Tarek Mansour called the resolution a "great step."
"Now, let’s pass this in the House!" Mansour said in a post on X.
On X, Polymarket said it fully supported the legislative measure.
"Our Rulebook & Terms of Service already prohibit such conduct, but codifying this into law is a step forward for the industry," the platform said. "Happy to help move this forward however we can."
Updated at 6:50 p.m. UTC to add comments from Polymarket
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