US Senate Unanimously Bans Prediction Market Trading for Senators and Staff to Prevent Conflicts of Interest

The US Senate voted unanimously on Thursday to ban prediction market trading among Senators and their staffers, joining a growing list of organizations restricting employees from using these platforms to avoid conflicts of interest.

Last week, Illinois Governor JB Pritzker prohibited state employees from leveraging insider information to place bets on prediction markets. Days earlier, National Public Radio issued a similar directive to its editorial staff.

“Serving in Congress is an honor, not a side hustle,” said Senator Bernie Moreno, a Republican from Ohio and the bill’s sponsor, in a statement on X. “Americans deserve to know that their leaders are here for the right reason!”

The resolution approved by the Senate alters the chamber’s rules, with violations policed internally. It does not carry the force of law and does not require approval from the House of Representatives or the president’s signature.

Congress Steps Up Scrutiny of Prediction Markets

The Senate’s decision comes as multiple bills aimed at regulating prediction markets circulate in Congress:

• Public Integrity in Financial Prediction Markets Act of 2026: Introduced by Representative Ritchie Torres (D-NY) in January to block federal officials from trading on prediction markets.
• Ban on Senior Executive Branch Trading: Proposed by Democratic Senators Jeff Merkley and Amy Klobuchar in March to formally prohibit senior members of the executive branch from engaging in such trades.
• Military and National Security Bills: A bipartisan proposal from Representatives Blake Moore (R-UT) and Salud Carbajal (D-CA) seeks to curb insider trading involving sensitive military secrets and democratic processes.
• Restrictions on Sensitive Markets: Other bills aim to prohibit prediction markets from offering sports betting or bets referencing terrorism, assassination, war, or the death of an individual.

Lawmakers intensified their scrutiny of prediction markets after anonymous bettors appeared to profit from trades made moments before major public announcements, raising suspicions of insider trading.

Last week, the US Department of Justice charged an individual for allegedly using nonpublic information to profit on these platforms. Prosecutors claimed US Army Special Forces Master Sergeant Gannon Ken Van Dyke, 38, exploited knowledge of the ouster of Venezuelan President Nicolás Maduro to earn over $404,000 in illicit profits on Polymarket, according to a separate civil complaint from the Commodity Futures Trading Commission. Van Dyke was reportedly involved in planning and executing Operation Absolute Resolve, the operation to remove Maduro from power.

Earlier this month, Senator Richard Blumenthal accused Polymarket of enabling users to profit from national security secrets. He criticized the platform for hosting a market that allowed bets on the rescue of a US soldier stranded in Iran.

“Polymarket operates in full compliance with applicable law, and our insider trading rules are the exact lines that the CFTC and courts draw for derivatives markets,” Olivia Chalos, Polymarket’s deputy chief legal officer, wrote in response on X. “We share Senator Blumenthal’s commitment to national security and market integrity.”

Aleks Gilbert is DL News’ New York-based DeFi Correspondent. Reach out to him with tips at [email protected].