Senate Passes Bipartisan Resolution Banning Members and Staff From Prediction Markets

The U.S. Senate passed a bipartisan resolution by voice vote on April 30, 2026, that amends its internal rules to prohibit senators and their staff from participating in prediction markets. The measure took effect immediately. Senate Minority Leader Chuck Schumer, D-N.Y., called the resolution a “no-brainer” and urged the House to adopt similar measures.

According to the resolution, senators and aides are barred from placing bets on platforms that allow wagering on future events including elections, economic indicators, or geopolitical developments. The ban follows scrutiny of whether such markets create conflicts of interest for lawmakers who possess non-public information.

The resolution does not cite specific incidents involving members of Congress. One case referenced in reporting involved a U.S. special forces soldier charged with using classified information to bet on the January capture of Venezuela’s then-president, Nicolas Maduro. Lawmakers have also noted bets related to the ongoing war with Iran, including wagers on potential ceasefires.

House Majority Leader Steve Scalise stated that the chamber would review the Senate’s action. House Administration Committee Chairman Rep. Bryan Steil said his panel has been working on similar language. Rep. , who is co-leading a proposed House ban, expressed optimism that the Senate’s move would build support for their effort.

Separately, Sens. , introduced a bill to extend the prohibition to all federally elected officials and government employees.

Prediction markets have grown in popularity. Platforms such as Polymarket and Kalshi facilitate peer-to-peer bets and, according to analyses, aggregate information through financial incentives. These markets outperformed traditional polls in the 2024 elections in certain cases and have formed partnerships with media organizations.

The Commodity Futures Trading Commission is preparing rulemaking, including an advance notice of proposed rulemaking scheduled for March 2026.

Industry participants argue the platforms function as financial exchanges rather than gambling operations and require tailored regulation. Analyses indicate that traditional insider-trading rules may not fully apply to prediction markets, which complicates enforcement.

The CFTC has noted higher risks in politically sensitive contracts. Some examples of potential manipulation have involved niche events where a participant could influence the outcome, such as a bettor ensuring a streaking incident at a sporting event.

The next 12 months of CFTC actions are expected to shape the regulatory framework for the industry.