The US Senate has unanimously passed a rule banning its members from participating in prediction markets, aiming to curb insider trading and restore public trust.
The measure, led by Bernie Moreno, amends Senate Rule XXXVII to prohibit lawmakers from entering contracts tied to real-world event outcomes.
The ban comes after scandals involving platforms like Polymarket and Kalshi, where individuals allegedly used non-public information to profit from bets.
The new rule applies to all 100 senators and took effect immediately on April 30, though it does not extend to House members or other government officials.
Recent incidents, including fines issued by Kalshi to political candidates and a case involving a US soldier accused of using classified intelligence for betting, accelerated the policy push.
Lawmakers argue the rule is necessary to prevent conflicts of interest as prediction markets grow in popularity and liquidity during the 2026 election cycle.
While limited in scope, the decision signals increasing regulatory focus on prediction markets, with pressure mounting on agencies like the CFTC to introduce broader safeguards.