Sen. Bernie Moreno said Friday that he will introduce a resolution barring senators from using prediction markets like Polymarket and Kalshi.
The bill would modify Senate rules to prevent members from entering into a financial agreement contingent on an outcome. Moreno said he will ask for it to pass unanimously.
“Any Senator who comes to Washington, D.C. to cash in, play the markets, or treat public office like a side hustle is a betrayal to the people they swore to serve,” Moreno said in a statement. “If you’re here to enrich yourself instead of fight for the American people, this is a clear abuse of power and you have no business holding public office.”
Prediction markets have exploded in popularity in recent years, with tens of billions in total trading volume last year. Congress is scrambling to keep up with regulation, despite increasing criticism from lawmakers over platforms that allow wagers on topics including war and terrorism.
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Kalshi said this week it suspended three political candidates from its site because they bet on their own races. Also this week, a U.S. soldier was arrested for insider trading after winning $400,000 for betting on the capture of Venezuelan President Nicolás Maduro, when he had prior knowledge of the operation.
Lawmakers have responded to the predictive market boom with a range of proposals, from targeted insider trading restrictions to near-total bans.
In March, Republican Rep. Adrian Smith of Nebraska and Democratic Rep. Nikki Budzinski of Illinois introduced the PREDICT Act, which would bar government officials and their families from trading on political- or policy-related prediction markets.
Others have proposed broader restrictions. The BETS OFF Act from Sen. Chris Murphy would target contracts tied to national security and government operations. The STOP Corrupt Bets Act from Sen. Jeff Merkley and Rep. Jamie Raskin would go further still — banning event contracts on elections, sports, military actions and government activity altogether and returning gambling regulation authority to the states.
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