The US Senate has moved to shut its own members and staff out of prediction markets, in a rare unanimous step that reflects growing alarm over whether people with access to sensitive information can use it for personal gain. According to The Associated Press, the resolution was approved by voice vote and takes effect immediately because it amends the chamber’s internal rules. Reuters-style coverage of the vote makes clear that the measure was expanded at the urging of Democratic senator Alex Padilla, while Republican senator Bernie Moreno introduced the original proposal.

The action follows a series of incidents that sharpened concerns in Washington. The Washington Post reported that lawmakers were reacting in part to allegations that a US special forces soldier used classified intelligence to profit from wagers tied to the eventual capture of Venezuela’s then-president, Nicolás Maduro. Attention also intensified after suspicious activity was reported around contracts linked to the war in Iran, reinforcing fears that markets built around future events could be vulnerable to insider advantage.

Senate Democratic leader Chuck Schumer backed the move and pressed the House of Representatives and the White House to adopt similar limits. Speaking in the Senate, he warned that lawmakers should not be allowed to turn governance into gambling. The broader push has also fed into a wider legislative debate, with Senator Jeff Merkley and Representative Jamie Raskin introducing separate legislation to bar betting on elections, government actions, war and sports through prediction markets.

Prediction markets such as Polymarket and Kalshi have rapidly gained attention because they let users trade on the likelihood of future events, from elections to geopolitical conflict. Supporters say they offer a live measure of public expectations, but critics argue they resemble a lightly disguised form of gambling with serious regulatory gaps. The Senate’s move suggests that, at least in one corner of government, the tolerance for that risk has now run out.

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Source: Noah Wire Services