Senators voted on April 30 to restrict themselves from prediction markets as there is an increasing concern in the potential for insider trading by government officials, CNBC reports.
The resolution was spearheaded by Ohio Senator Bernie Moreno, and immidely prohibits senators and staff from the markets.
The platforms, like Kalshi and Polymarket, are quickly growing in popularity as a way to effectively bet on the results on scores of outcomes, spanning from sporting events to when international war will be waged.
“United States Senators have no business engaging in speculative activities like prediction markets while collecting a taxpayer-funded paycheck, period,” Moreno, a Republican, said in a statement via Politico.
Also on Thursday, the Commodity Futures Trading Commission was called on by a group of Democratic members of Congress to issue a rule “that prevents insider trading and corruption in the market and prohibits event contracts on the outcome of elections, war and military actions in the U.S. or abroad, sports, and government actions without a valid economic hedging interest.”
This movement comes in the days following several accusations of insider trading. on On April 22, Kalshi announced that it had suspended and fined a U.S. Senate candidate a two candidates running for the House of Representatives because it appears they traded on their own campaigns.
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