Unanimous Senate Vote Bans Prediction Market Trading, Puts Pressure on Speaker Johnson

WASHINGTON, D.C. — The Senate has approved a bipartisan measure banning members and their staff from using insider information to profit on prediction market platforms, marking a rare unanimous action that took effect immediately. The rule change was adopted before lawmakers left Washington for a weeklong recess. The measure, pushed by Sen. Bernie Moreno, prevents senators and their aides from placing bets on platforms such as Polymarket and Kalshi. These platforms allow users to wager on real-world events, including elections, geopolitical developments, and other high-impact outcomes.

Moreno said the effort aims to eliminate potential conflicts of interest and restore public trust in Congress. “I don’t believe we should trade stocks at all. It’s completely insane,” Moreno said. “I think we should focus on our jobs and have our voters go, ‘Hey, this guy’s voting this way, because this is the right thing for the state.’”

The rule change passed unanimously and immediately amended Senate ethics rules, requiring no action from the House or the president. It applies specifically to senators and Senate staff. Senate Minority Leader Chuck Schumer praised the move on the Senate floor and urged the House to adopt a similar standard. “Speaker Johnson should immediately do the same thing in the House,” Schumer said.

There is already an effort underway in the House to mirror the Senate’s action. Rep. Ashley Hinson is leading a push for comparable legislation, as part of a broader conversation about ethics and financial activity by lawmakers. The move comes as Congress has struggled to reach consensus on other reforms, including proposals to ban stock trading by members while in office. Advocates of the new rule argue that prediction markets present a similar risk, particularly for officials with access to sensitive or nonpublic information.

Industry leaders have also expressed support for the change. Polymarket said it backs efforts to codify restrictions into law, noting that its own policies already prohibit insider trading. “Happy to help move this forward however we can,” the company said in a statement. Tarek Mansour, co-founder of Kalshi, also called for broader adoption of the rule. He said the company already blocks members of Congress from participating and enforces policies against insider trading. “This is a great step to increase trust in our markets by making it an industry standard,” Mansour said.

Despite bipartisan support in the Senate, the rule applies only within that chamber, leaving House members and other government officials outside its scope for now. Lawmakers pushing for expanded measures say further action will be needed to address those gaps. Sens. Todd Young and Elissa Slotkin have introduced separate legislation that would extend restrictions across the federal government. Their proposal would prohibit officials from using insider information to place prediction market bets.

The Senate’s decision represents a rare moment of agreement on ethics reform, but its broader impact will depend on whether similar restrictions are adopted across the federal government. The development highlights ongoing discussions about congressional ethics, financial transparency, and the potential for conflicts of interest in an era of rapidly evolving financial technologies. Prediction markets have grown in popularity and influence, raising questions about how lawmakers and staff interact with them given their access to nonpublic information.

The rule change is expected to serve as a model for potential House action and broader federal reforms. Public trust in Congress has been a persistent concern, with polls consistently showing low approval ratings for the institution. Advocates argue that measures like this one can help rebuild confidence by demonstrating a commitment to ethical standards. Critics of congressional stock trading and related activities have long called for stricter rules, and the prediction market ban aligns with those efforts.

As the measure takes effect, attention turns to the House, where similar proposals are under consideration. The bipartisan nature of the Senate vote may encourage House Republicans and Democrats to pursue comparable reforms. The broader legislative landscape includes ongoing debates over stock trading bans and other ethics measures, with varying levels of support across party lines. The unanimous Senate action provides momentum for those discussions, though differences in chamber rules and political priorities could affect the outcome in the House.

The developments occur amid heightened scrutiny of congressional conduct and the influence of money in politics. Legal and policy experts note that while the Senate rule is a significant step, its limited scope means additional action will be needed to address potential conflicts across the federal government. The proposal from Sens. Young and Slotkin represents one avenue for expanding the restrictions, with potential implications for executive branch officials and other federal employees.

Further updates are expected as the House considers parallel legislation and as lawmakers return from recess. The Senate’s unanimous vote marks a notable instance of bipartisanship on ethics reform, providing a foundation for continued discussions on transparency and accountability in Congress.