US Senators Propose Ban on Officials Trading in Prediction Markets

Two United States Democratic Senators, Jeff Merkley and Amy Klobuchar, are set to introduce legislation barring members of Congress, the president, and vice president from trading event contracts on prediction market platforms like Kalshi and Polymarket. This move is a key step towards maintaining the integrity of government and preventing the misuse of confidential information for personal gain.

The legislation, if passed, would also curtail other members of the executive branch from profiting on the platforms, or face fines of at least $10,000 for each violation. The bill also states that violators will have to pay back profits made in trades. This essential measure would help to strengthen the Commodity Futures Trading Commission’s ability to go after bad actors and provide rules to prevent those with confidential government or policy information from exploiting their access for financial gain.

The proposed bill comes amid a wave of new political pressure on the sector, with another Democratic Senator, Chris Murphy, working on legislation to curb the industry. A new conservative coalition, led by former White House Office of Management and Budget director Mick Mulvaney, also wants the industry to be regulated more akin to sports betting.