SENATE BANS PREDICTION MARKET TRADES

Prediction markets allow users to bet on outcomes of events, including elections and policy decisions. Lawmakers' access to non-public information creates potential conflicts of interest when trading on such platforms. The ban applies to all senators and takes effect immediately. It expands existing congressional trading restrictions under the STOCK Act, which prohibited members from trading on material non-public information obtained through official duties. Prediction markets have grown in prominence and regulatory acceptance. Kalshi received CFTC approval for election-related contracts, while Polymarket operates as a decentralized platform. Both have attracted mainstream attention and participation. The unanimous passage signals broad bipartisan agreement on preventing insider trading risks. The rule reinforces existing ethics standards for federal lawmakers and reflects growing scrutiny of prediction market participation among those with privileged access to government information.