No More Political Gambling: Senate Shuts Itself Out of Prediction Markets

TLDR

• The US Senate passed a unanimous resolution banning senators and staff from using prediction markets
• The ban took immediate effect after passing by unanimous consent
• The resolution was introduced by Republican Senator Bernie Moreno of Ohio
• A special forces soldier was recently charged with using classified info to bet on Polymarket
• A similar resolution will be introduced in the House by Republican Representative Ashley Hinson

The US Senate voted unanimously on Thursday to ban its members and staff from participating in prediction markets. The resolution, introduced by Ohio Republican Senator Bernie Moreno, changed Senate rules immediately.

Moreno said senators “have no business” engaging in speculative activities while collecting a taxpayer-funded paycheck. The new rule bars members from entering any agreement or transaction tied to the outcome of a specific event.

The resolution came after a special forces soldier was charged on April 23 with using classified information to place bets on Polymarket. The soldier, who was involved in a plan to capture former Venezuelan President Nicolás Maduro, has pleaded not guilty.

Lawmakers also raised concerns about well-timed bets on the Iran war. Senate Democratic leader Chuck Schumer called the ban a “no-brainer.”

Bipartisan Support for the Ban

The resolution passed by unanimous consent, meaning no senator objected. Both parties backed the move, with Schumer urging it go further to cover the executive branch and administration employees.

Republican Representative Ashley Hinson posted on X that she plans to introduce a similar resolution in the House of Representatives.

Industry Response

Polymarket, one of the leading prediction market platforms, said it fully supports the Senate resolution. The company noted its terms of service already ban such conduct but called the new law “a step forward for the industry.”

Polymarket had previously reached a 2022 agreement with the CFTC and is not supposed to operate inside the US.

Tarek Mansour, co-founder and CEO of rival platform Kalshi, also welcomed the resolution. He said Kalshi already blocks members of Congress and enforces against insider trading.

Political betting has grown sharply in popularity in recent years. Some candidates have already faced penalties for wagering on their own races.

The Senate resolution is 14 lines long. Its passing contrasts with the Senate’s slower progress on broader crypto market structure legislation.

As of the vote, Polymarket odds gave Democrats even chances of reclaiming the Senate majority in November elections.

The post No More Political Gambling: Senate Shuts Itself Out of Prediction Markets appeared first on CoinCentral.