The United States prohibits federal senators and other related public officials from trading in prediction markets.
This week, the U.S. Senate unanimously passed a new rule that takes effect immediately: prohibiting federal senators, Senate staff, and other relevant public officials from trading in prediction markets. Previously, concerns about insider trading on platforms such as Kalshi and Polymarket have been increasing. An American Army Special Forces soldier was arrested and charged with using classified information to place bets on events related to the detention of Venezuelan leader Maduro on the Polymarket platform and making a profit, further sparking public attention. Lawmakers also pointed out that there were abnormal betting trends before and after the release of major announcements related to conflicts with Iran, proving that people with access to insider government information were profiting from it. Senate Minority Leader Chuck Schumer called the ban a necessary and uncontroversial move and urged the House of Representatives and the Trump administration to follow suit. There have also been bipartisan bills proposed to expand similar trading restrictions to all federal officials and government employees. The resolution was led by Republican Senator Bernie Moreno from Ohio, with Democratic Senator Alex Padilla proposing an amendment to extend the ban to all Senate staff.
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