Moulton bans staff from using prediction markets like Kalshi, Polymarket
Rep. Seth Moulton, a Democrat from Massachusetts and a 2020 presidential candidate, meets with volunteers during a campaign visit in Manchester, New Hampshire, on Tuesday, April 23, 2019.
Adam Glanzman | Bloomberg | Getty Images
Rep. Seth Moulton, D-Mass., announced an officewide policy Wednesday banning congressional staff from using prediction market platforms like Kalshi and Polymarket.
“Congressional staff and the Members they work for exist to serve the voters of the districts they represent, not to profit from the policy decisions and world events we are here to respond to,” Moulton said in a statement. he said. sent to x. “My office has not and will not engage in these dealings that are contrary to every tenet of a clean, honest government that works for the people.”
A spokesman for Moulton said he believed the policy was the first of its kind on Capitol Hill. It comes amid a wave of proposals from lawmakers seeking to rein in prediction markets, which allow users to bet on the outcome of a wide range of events. basketball games with Oscar best picture winners.
The platforms have come under intense scrutiny from some states and casinos, who argue that prediction markets present a loophole for gambling and should be regulated by the state. Lawmakers have also recently expressed concern about the potential for insider trading in prediction markets, following well-timed trades on world events such as the ouster of Venezuelan President Nicolas Maduro and the war in Iran.
Moulton co-sponsored legislation that would ban elected officials from running prediction markets bets on insider information.
“Prediction markets have become a playground for corrupt individuals who can bet on things like election results, wars, and even the deaths of public figures,” Moulton said in the statement. he said. “This creates a perverse incentive structure that poses a real threat to American society today.”
Spokespeople for Kalshi and Polymarket did not immediately respond to emails seeking comment.
Kalshi And polymarket Both announced new insider trading protections on their platforms this week.
Disclosure: CNBC and Kalshi have a business relationship that includes a minority investment in CNBC.
