U.S. Senate Bans Members and Staff from Participating in Prediction Market Betting

On May 1, the U.S. Senate unanimously passed a new rule proposed by Ohio Republican Senator Bernie Moreno, prohibiting senators and their staff from participating in prediction market betting, with the restrictions taking effect immediately. According to the new rule, lawmakers are barred from engaging in any contracts or agreements that involve payments, trading, or settlement based on whether specific events occur and the extent of their outcomes, covering speculative activities such as political prediction markets. Moreno stated, “Members of Congress should not be receiving taxpayer salaries while engaging in speculative activities like prediction markets.” In recent years, the popularity of political prediction markets has surged, with platforms like Polymarket facing scrutiny over insider trading controversies and regulatory issues. Polymarket responded by expressing support for the Senate’s action and noted that its platform rules already prohibit such activities, stating, “Writing it into law is a step forward for the industry.”