The U.S. Senate has unanimously passed legislation prohibiting senators and their staff from participating in prediction markets such as Kalshi and Polymarket, where users can wager on a wide range of outcomes, including political races and world events [1]. The measure, spearheaded by Sen. Bernie Moreno, R-Ohio, was enacted quietly before the Senate adjourned for a weeklong recess and immediately altered Senate rules [1]. Moreno stated that the legislation aims to eliminate concerns about lawmakers engaging in 'side hustles' and to bolster public trust in the institution, especially as previous attempts to ban stock trading among lawmakers have failed [1].
Senate Minority Leader Chuck Schumer, D-N.Y., praised the move on the Senate floor and urged the House of Representatives to adopt similar restrictions, specifically calling on Speaker Johnson to act [1]. In the House, Rep. Ashley Hinson, R-Iowa, who is running to replace retiring Sen. Joni Ernst, is leading a parallel effort to implement a comparable ban [1].
The industry has responded positively to the Senate's decision. Polymarket expressed full support, noting that its Rulebook and Terms of Service already prohibit such conduct, and described the legislation as a step forward for the industry [1]. Tarek Mansour, co-founder of Kalshi, echoed this sentiment, stating that Kalshi already blocks members of Congress and enforces against insider trading, and called the Senate's action a significant move to increase trust in prediction markets [1].
No specific market reactions or analyst opinions were mentioned in the article. However, the support from major prediction market platforms suggests the legislation is seen as a positive development for industry integrity [1].
CONCLUSION
The Senate's unanimous ban on lawmakers betting in prediction markets marks a significant step toward increasing institutional trust and addressing concerns over potential conflicts of interest. Industry leaders have welcomed the move, and similar action may soon follow in the House. The legislation is expected to set a new standard for ethical conduct in political betting markets.