Key Points
- A unanimous Senate vote prohibited all senators and their staff from accessing prediction markets
- The prohibition became effective immediately through unanimous consent
- Ohio Republican Senator Bernie Moreno spearheaded the measure
- The move follows criminal charges against a special operations soldier for betting with classified intelligence on Polymarket
- House Representative Ashley Hinson plans to advance comparable legislation in the lower chamber
On Thursday, the United States Senate adopted a sweeping prohibition preventing its members and staff from engaging with prediction markets. Senator Bernie Moreno, an Ohio Republican, championed the measure which altered Senate regulations with immediate effect.
According to Moreno, elected officials receiving government salaries should avoid speculative betting activities. The updated regulation prohibits members from participating in any contract or arrangement based on future event outcomes.
The legislative action followed criminal charges filed April 23 against a special operations servicemember accused of leveraging classified intelligence for Polymarket wagers. The defendant, connected to an operation targeting Venezuela’s former leader Nicolás Maduro, has entered a not guilty plea.
Legislators additionally expressed alarm over suspicious betting patterns related to potential conflict with Iran. Senate Majority Leader Chuck Schumer characterized the prohibition as obvious and necessary.
“We cannot permit Congress to become a gambling establishment where public servants wager on military conflicts, financial disasters, or electoral contests,” Schumer declared during floor remarks.
Cross-Party Agreement on Restrictions
The measure advanced through unanimous consent without opposition from any senator. Leaders from both political parties endorsed the initiative, though Schumer advocated extending coverage to executive branch personnel and administrative staff.
“Administration officials and their employees should operate under identical restrictions,” Schumer stated, referencing what he described as “concerning patterns of corruption and personal enrichment.”
House Republican Ashley Hinson announced via X her intention to propose parallel legislation in the House of Representatives.
Platform Reactions
Polymarket, a prominent prediction market operator, issued a statement endorsing the Senate action. The platform emphasized its existing terms of service already prohibit such behavior while characterizing the legislation as “progress for our sector.”
Polymarket entered into a 2022 settlement with the CFTC and maintains restrictions on US-based users.
Tarek Mansour, who leads competing platform Kalshi as co-founder and CEO, similarly applauded the decision. He confirmed Kalshi maintains blocks on Congressional members and actively prevents insider trading violations.
Political wagering has experienced substantial expansion recently. Several political candidates have already incurred sanctions for betting on their own electoral contests.
The Senate measure spans just 14 lines. Its swift adoption stands in notable contrast to the chamber’s prolonged deliberations on comprehensive cryptocurrency regulatory frameworks.
At the time of the vote, Polymarket data indicated Democrats held a 50-50 probability of regaining Senate control in the upcoming November elections.
