Sen. Bernie Moreno (R-OH) introduced a resolution on Friday to ban sitting senators from trading on prediction markets, such as Kalshi or Polymarket.
The freshman lawmaker’s measure is the latest instance of Congress seeking to regulate insider trading on the betting platforms.
The newly filed legislation would amend Senate rules to prohibit members from entering or offering to enter any “agreement, contract, or transaction that provides for any purchase, sale, payment, or delivery” dependent on the outcome of a specific event.
“Any Senator who came to DC to cash in, game prediction markets, or treat public office like a side hustle is betraying the oath they swore to their country,” Moreno posted on X. “I’m introducing legislation to BAN this insider trading in the Senate and will call for it to be passed UNANIMOUSLY.”
The resolution is similar to another bill introduced by Sen. Jeff Merkley (D-OR) and four other Democratic senators, who proposed a bill that no member of Congress “may purchase, sell, or otherwise exchange an event contract.”
When the Commodity Futures Trading Commission announced in February that it would protect the federal regulation of prediction markets against states in court, Moreno supported the effort.
“Clear lines of delineation and clarity on regulations is essential for American led innovation,” he wrote. “Congress gave the CFTC the authority they needed. I applaud [CFTC Chairman Michael Selig] for his leadership in bringing about much needed certainty to our innovators.”
Insider trading within political circles has become a point of concern for Congress, especially after recent troubling developments.
On Thursday, the Department of Justice indicted a U.S. soldier for insider trading on Polymarket. He was accused of using classified information to bet on the January capture of former Venezuelan dictator Nicolas Maduro. The soldier made over $400,000 in profits from betting on the event. On Friday, the defendant was released from jail on bond.
The high-profile issue surrounding prediction markets caught the attention of President Donald Trump, who voiced concern on Thursday about the platforms.
“The whole world, unfortunately, has become somewhat of a casino,” Trump responded to a question about insider trading and its role amid the Iran war.
“It’s a crazy world,” he lamented. “It’s a much different world than it was.”
Kalshi and Polymarket are facing public scrutiny for creating perverse incentives as terrible events, like war or terrorism, play out on the global stage. Both platforms have taken steps to crack down on insider trading.
Last month, Polymarket clarified that it does not tolerate trading on stolen confidential information. After the soldier’s arrest, the company said it notified the DOJ that the user was trading on classified information from the federal government.
INSIDE KALSHI’S WASHINGTON PLAY AS CONGRESS EYES PREDICTION MARKETS
Earlier this week, Kalshi fined and suspended three political candidates for betting on their own races. Those political figures were Minnesota Democratic congressional candidate and state Sen. Matt Klein, former Texas Republican congressional candidate Ezekiel Enriquez, and independent Virginia Senate candidate Mark Moran.
Moran posted a message in support of Moreno’s resolution: “Good first step, now ban all domestic political prediction markets.”