by Misty Severi
The Senate unanimously voted Thursday to pass a resolution that preemptively bans them from trading on prediction markets such as Polymarket amid growing concerns of insider trading on such platforms.
The bill, which was introduced by Ohio GOP Sen. Bernie Moreno last week, comes after a U.S. soldier was accused of allegedly using classified information to place bets on Polymarket about the military operation to capture Venezuelan President Nicolás Maduro.
“Our men and women in uniform are trusted with classified information in order to accomplish their mission as safely and effectively as possible, and are prohibited from using this highly sensitive information for personal financial gain,” said Acting Attorney General Todd Blanche. “Widespread access to prediction markets is a relatively new phenomenon, but federal laws protecting national security information fully apply.”
FBI Director Kash Patel said after the arrest, the “announcement makes clear no one is above the law, and this FBI will do whatever it takes to defend the homeland and safeguard our nation’s secrets. Any clearance holders thinking of cashing in their access and knowledge for personal gain will be held accountable.”
The resolution amends the Senate’s rules to prohibit lawmakers from entering into “an agreement, contract, or transaction that provides for any purchase, sale, payment or delivery” based on an event’s outcome.
“Proud to say my bill to ban members of Congress from insider trading on prediction markets just passed the Senate UNANIMOUSLY!” Moreno wrote on X. “Serving in Congress is an honor, not a side hustle. Americans deserve to know that their leaders are here for the right reason!”
Prediction markets are an avenue for gambling that allows people to bet on the outcome of various events, from elections to sports to the economy.
Polymarket, which is one of the largest prediction market platforms, said it supports the resolution and banning insider trading on its app.
“We’re in full support of this,” Polymarket posted on X. “Our Rulebook & Terms of Service already prohibit such conduct, but codifying this into law is a step forward for the industry. Happy to help move this forward however we can.”
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Misty Severi is a reporter for Just the News. Zachery Schmidt is the digital editor of The Star News Network and contributed to this story.
Photo “Senator Bernie Moreno” by Senator Bernie Moreno.
