U.S. senators ban themselves from prediction markets trading

US Senate On Thursday, he unanimously passed a rule banning senators from trading in prediction markets, effective immediately.

The move comes amid growing concerns about insider trading and contracts for events that could involve death or violence on prediction market platforms such as Kalshi and Polymarket.

On April 22, Kalshi said he suspended and fined a U.S. Senate candidate and two House candidates. political insider trading in their own campaigns.

On April 23, U.S. Army Special Forces soldier Master Sgt. Gannon Ken Van Dyke was arrested on an indictment accusing him of using classified information to bet Polymarket on the American military mission capturing Venezuelan leader Nicolás Maduro.

While on that mission, Van Dyke earned approximately $410,000 from those bets, according to the Justice Department.

Earlier Thursday, a group of Democratic members of Congress called on the Commodity Futures Trading Commission to issue a rule that “prevents insider trading and market fraud and prohibits event contracts on the results of elections, war and military actions, sports, and government actions in the United States or abroad without a valid economic hedging interest.”

Kalshi and Polymarket praised the Senate’s action.

“I applaud the Senate for passing this resolution prohibiting senators and their offices from trading in prediction markets.” Kalshi CEO Tarek Mansour Wrote an article on X.

“Kalshi is already proactively blocking members of Congress and enforcing insider trading. This is a great step to increase confidence in our markets by making this an industry standard,” Mansour said. “Now let’s pass this to the Parliament!”

Polymarket said in its own post on

Disclosure: CNBC and Kalshi have a business relationship that includes a minority investment in CNBC.