US Senators ban themselves from prediction markets after three candidates caught betting on own races

The Senate voted unanimously to bar its members from trading on prediction markets, a move that came roughly a week after Kalshi reported catching three congressional candidates placing bets on their own campaigns. The resolution, which passed by unanimous consent, amends the chamber's conflict-of-interest rules and takes effect immediately without requiring House approval. A companion measure addressing the same conduct sits pending in the House.

The swift bipartisan action signals mounting discomfort on Capitol Hill with the expanding reach of prediction markets into political outcomes. Sen. Bernie Moreno (R-Ohio), who introduced the Senate resolution, framed the ban as a matter of basic ethics. "United States Senators have no business engaging in speculative activities like prediction markets while collecting a taxpayer-funded paycheck, period," he said. "Serving in Congress should never be about finding new ways to profit; it should be about delivering results for the American people." The language drew support from both parties, reflecting rare consensus on an ethics question.

The underlying trigger appears to be the exposure of candidates using platforms like Kalshi to wager on their own electoral prospects, raising questions about whether such activity could constitute market manipulation or a conflict of interest that existing disclosure rules do not adequately cover. The broader implications extend to how prediction markets intersect with federal officeholding and campaign finance law, areas where regulators have offered limited guidance. For now, the Senate has moved to close one door, but the House resolution and ongoing questions about market oversight remain unresolved.