US Senators implement self-ban on engaging in prediction market activity

US Senators have passed a new resolution prohibiting themselves from trading on prediction markets such as Kalshi, Polymarket and Crypto.com, as well as urging the House of Representatives, Executive Brand and Judicial Brand to authorize similar legislation. 

The Senate resolution was originally pushed forward by Ohio Senator Bernie Moreno on April 29, and passed through the legislative body following a voice vote held on April 30. A Senate voice vote means no objections were submitted and a formal roll call vote was not taken. 

"Serving in Congress is an honor, not a side hustle," Moreno wrote on social media following the resolution’s passing. 

"Americans deserve to know that their leaders are here for the right reason!"

Also providing commentary on the resolution was Kalshi CEO Tarek Mansour, who stated “I applaud the Senate for passing this resolution to ban Senators and their offices from trading on prediction markets.

“Kalshi already proactively blocks members of congress and enforces against insider trading. This is a great step to increase trust in our markets by making it an industry standard. Now, let’s pass this in the House!”

Moreno’s resolution is not the first to be submitted by US lawmakers to help prevent potential insider trading, as Oregon Senator Jeff Merkley and Minnesota Senator Amy Klobuchar introduced the End Prediction Market Corruption Act on March 5. 

The End Prediction Market Corruption Act would prohibit US government officials such as the President, Vice President and members of Congress from trading event contracts. Any violations of the legislation would result in civic penalties of $10,000, administered by the US Attorney General.

Later in March, Kalshi and Polymarket both introduced new safety guidelines which seek to prevent insider trading efforts on prediction markets, including those conducted by politicians, athletes and “other relevant people.”

Preventative measures unveiled by Kalshi include preemptive screenings to block political candidates and individuals involved in college and professional sports from trading on markets they are associated with.