U.S. Senate Members Unanimously Adopt an Amendment Banning Them From Betting on Polymarket and Kalshi

The U.S. Senate unanimously adopted a resolution banning senators, their staff, and chamber officials from betting on prediction markets, including Kalshi and Polymarket. The decision comes after the indictment of a U.S. soldier accused of using classified information linked to the operation targeting Nicolás Maduro to win more than $400,000 on Polymarket. Senate Resolution 708 took effect immediately and now changes the Senate’s internal rules.

The U.S. Senate adopts an immediate ban on prediction markets

The U.S. Senate took a rare step with this unanimous vote. In a single day, lawmakers approved a rule that bans senators, Senate staff, and chamber officials from betting on prediction markets.

Republican Senator Bernie Moreno introduced the proposal. Democratic Senator Alex Padilla then expanded it to include Senate staff. As a result, the U.S. Senate is not only restricting elected officials but also the people who work directly around them.

Bernie Moreno defended the measure by saying senators should not take part in speculative activities while receiving a taxpayer-funded salary:

United States senators have no business engaging in speculative activities like prediction markets while collecting a taxpayer-funded paycheck.

Bernie Moreno, Republican U.S. senator. Source: Cryptopolitan.

For his part, Chuck Schumer supported the initiative. He warned that Congress should not become a place where public officials bet on wars, economic crises, or political decisions.

The U.S. Senate’s decision therefore aims to reduce conflicts of interest. It also seeks to prevent the use of sensitive information in bets linked to political, military, or economic news.

Polymarket at the heart of the ban after a bet on the operation targeting Nicolás Maduro

The case that came before the vote involves Gannon Ken Van Dyke, a 38-year-old master sergeant in the U.S. Special Forces. According to prosecutors, he allegedly used classified information to bet on Polymarket.

The bets concerned Operation Absolute Resolve, linked to the capture of Venezuelan President Nicolás Maduro in Caracas on January 3. The Justice Department says Van Dyke took part in the planning and execution of this operation.

Between December 27 and January 2, he allegedly placed about $33,034 across 13 bets. All of them concerned a possible deployment of U.S. forces to Venezuela before January 31. These operations on Polymarket allegedly earned him about $409,881 in profits.

Van Dyke pleaded not guilty before a federal court in Manhattan. He was released on $250,000 bail. However, the case increased authorities’ attention on Polymarket and prediction markets in general.

The Commodity Futures Trading Commission also filed a parallel civil complaint. The agency considers this case its first insider trading action involving prediction markets. For regulators, Polymarket therefore illustrates a concrete risk when confidential information meets binary-outcome markets.

A still limited framework, but one likely to evolve

The ban adopted by the U.S. Senate remains an internal rule. It does not create a new criminal law. The Senate remains an internal body. It does not create a new criminal law.

However, if an elected official or staff member uses privileged information, existing federal laws may still apply. Prosecutors and regulators therefore retain the ability to intervene. Here, the U.S. Senate is acting mainly as a preventive measure before other cases further weaken public trust.

Experts stress that prediction markets remain vulnerable. Academic research cited in the original text mentions more than 210,000 suspicious wallet-market pairs on Polymarket, with significant abnormal profits. This finding fuels concerns about informed betting.

Internationally, the situation remains unclear. Some countries treat these markets as gambling. Others view them more as financial instruments. This regulatory diversity leaves gaps, especially for Polymarket, Kalshi, and similar platforms.

In the coming months, the U.S. Senate could serve as a starting point for broader oversight. Prediction markets are not disappearing, but their use by public officials is likely to face closer scrutiny.