Senator Moreno Moves to Ban Senators From Prediction Markets Amid Insider Trading Fears

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Senator Moreno Moves to Ban Senators From Prediction Markets Amid Insider Trading Fears

Senator Bernie Moreno, a member of the Senate Banking Committee, is set to introduce a resolution that bans senators from betting on prediction markets. This comes amid recent events involving insider trading by politicians, who bet on their markets.

Senator Moreno To Introduce Resolution On Prediction Market Ban

According to a press release, Senator Moreno plans to introduce a resolution banning sitting U.S. senators from participating in prediction markets. “Any Senator who comes to Washington, D.C. to cash in, play the markets, or treat public office like a side hustle is a betrayal to the people they swore to serve,” the senator said.

He added that those who are here to enrich themselves rather than fight for the American people are clearly abusing their power and have no business holding public office. The resolution aims to modify the Senates standing rules to prohibit senators from entering into any financial deal in which the outcome depends on a specific event occurring or not occurring.

This move comes just days after the prediction markets platform Kalshi suspended three political candidates, who it claimed bet on their own races. It also comes days after the Department of Justice (DOJ) announced that it had charged a U.S. soldier with using classified information to profit from prediction market bets.

The soldier in question had allegedly made over $400,000 trading on Polymarket regarding the timing of when the U.S. military operation to capture Nicolás Maduro in Venezuela would take place. Meanwhile, alongside Morenos resolution, it is worth noting that U.S. representatives have also introduced the PREDICT Act, which aims to prevent top government officials from betting on political prediction market bets.

U.S. House Also Exploring Changes To Current Law

According to a Punchbowl report, key House committees are actively exploring whether they should make changes to federal prediction market law. Rep. French Hill, the Chairman of the House Committee on Financial Services, revealed that members are asking regulatory agencies and stakeholders if there is a need for any imminent statutory change.

Hill further revealed that they are holding hearings and briefings and soliciting feedback from the U.S. SEC and CFTC on any needed congressional action. It is worth noting that the CFTC, which is the regulator for prediction markets, is currently battling state regulators who are cracking down on these platforms. As CoinGape reported, New York recently sued Coinbase over its prediction markets and is likely to sue Kalshi soon.

These state regulators and authorities claim that these prediction markets are operating as illegal gambling sites. In response, the CFTC has already sued Arizona, Connecticut, and Illinois to assert its exclusive jurisdiction over these platforms.