Senate unanimously bans lawmakers and staff from prediction market betting
Updated
Updated · Fox News · May 4
Senate unanimously bans lawmakers and staff from prediction market betting
10 articles · Updated · Fox News · May 4
The measure, pushed by Republican Senator Bernie Moreno before a weeklong recess in Washington, immediately changed Senate rules and was praised by Democratic leader Chuck Schumer.
Moreno said it targets lawmakers’ “side hustles” and insider-information concerns, while Schumer urged House Speaker Mike Johnson to adopt matching restrictions in the House.
Polymarket and Kalshi backed the move, saying they already restrict congressional users, as Congress still struggles to advance broader bans on lawmakers trading stocks.
If lawmakers are banned from trading stocks, what loopholes could still allow them to profit from privileged information?
With states challenging federal authority, who will ultimately police the billion-dollar prediction market industry?
Can advanced AI ever truly detect insider trading when the secret information itself remains classified?
How a $400,000 Insider Bet on Venezuela Triggered the Senate's 2026 Prediction Market Ban
Overview
In response to a high-profile insider trading scandal where Sergeant Gannon Ken Van Dyke used classified information to profit over $400,000 on prediction markets, the U.S. Senate swiftly banned its members and staff from participating in these markets in April 2026. This ban, enforced mainly through platform surveillance, exposed gaps in internal Senate monitoring and disciplinary procedures. The scandal also spurred broader legislative efforts to restrict prediction markets involving sensitive topics like war and terrorism. Meanwhile, states challenged federal regulatory authority, prompting platforms to adapt by self-regulating under federal oversight. Critics warn that without stronger federal rules and better consumer protections, risks to national security and market integrity remain significant.