U.S. Senate Bans Members, Aides From Prediction Markets Over Insider-Trading Risks
Updated
Updated · Fox News · Jul 25
U.S. Senate Bans Members, Aides From Prediction Markets Over Insider-Trading Risks
2 articles · Updated · Fox News · Jul 25
Summary
The Senate adopted a measure barring senators and their aides from trading on prediction markets, targeting a fast-growing corner of online wagering that lawmakers see as vulnerable to misuse of non-public information.
Kalshi and Polymarket let users bet on political, economic and other real-world outcomes, raising concerns that congressional staff could profit from privileged knowledge unavailable to ordinary traders.
Recent examples cited in the debate included a soldier allegedly using inside information to bet on the timing of military action in Venezuela and a White House teleprompter operator profiting from advance knowledge of Trump speeches.
The move adds to emerging state and federal scrutiny of prediction markets, even as the industry expands beyond gambling into a tool some users treat as an alternative to polls and focus groups.