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Government The Almighty Buck United States

US Senators Ban Themselves From Prediction Markets Trading (cnbc.com) 35

The U.S. Senate unanimously passed a rule banning senators from trading on prediction markets effective immediately. CNBC reports: The move came amid rising concern about insider trading on prediction market platforms such as Kalshi and Polymarket, and about event contracts that can involve death or violence. On April 22, Kalshi said it had suspended and fined one U.S. Senate candidate and two candidates for the House of Representatives for political insider trading on their own campaigns.

Earlier on Thursday, a group of Democratic members of Congress called on the Commodity Futures Trading Commission to issue a rule "that prevents insider trading and corruption in the market and prohibits event contracts on the outcome of elections, war and military actions in the U.S. or abroad, sports, and government actions without a valid economic hedging interest." Kalshi and Polymarket both praised the Senate's action.
"I applaud the Senate for passing this resolution to ban Senators and their offices from trading on prediction markets," Kalshi CEO Tarek Mansour wrote in a post on X. "Kalshi already proactively blocks members of congress and enforces against insider trading. This is a great step to increase trust in our markets by making it an industry standard," Mansour said. "Now, let's pass this in the House!"

Polymarket, in its own post on X, said, "We're in full support of this. Our Rulebook & Terms of Service already prohibit such conduct, but codifying this into law is a step forward for the industry. Happy to help move this forward however we can."

US Senators Ban Themselves From Prediction Markets Trading

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  • Pinky Swear! (Score:5, Informative)

    by Local ID10T ( 790134 ) <ID10T.L.USER@gmail.com> on Thursday April 30, 2026 @09:27PM (#66121470) Homepage

    This is an internal rule not a law.

    It is enforceable via self-policing (committee investigates and votes on guilt and recommends penalties to the chamber). Like most rules violations, the penalties are variable (pay a fine? expulsion? somewhere in between?). The Senate Rules Committee can also quietly choose not to renew this rule at any time in the future.

    It is a good thing... but don't read too much into it. It is a gesture.

    • Re:Pinky Swear! (Score:4, Insightful)

      by algaeman ( 600564 ) on Thursday April 30, 2026 @10:05PM (#66121506)
      It's only illegal if you're a democrat.
      • It's only illegal if you're a democrat.

        Thats rich, considering the spokesperson for Congressional Insider Trading is on hell of an infamous Democrat.

        Remember when Pelosi had the nerve to defend that corrupt shit as a fucking job perk?

        Her net worth certainly remembers. So does every professional investor she made look like an amateur.

        • by BranMan ( 29917 )

          To be fair to Pelosi, that's not a high bar to clear. I'm no genius investor by any means (I make plenty of missteps), but even I make most professional investors look like amateurs.

      • You are retarded.

    • Re:Pinky Swear! (Score:4, Informative)

      by mADneSs ( 167736 ) on Thursday April 30, 2026 @10:08PM (#66121508)
      Also doesn't appear to ban spouse/family members from placing bets either. And there's always the 'friend loophole'. And even after all of that, it's still open season on insider stock trading.
    • And of course... I expect some people will assume this is related to stock trading when it's completely separate.

      It is a good thing, yeah... but doesn't go anywhere near far enough.

    • I'm a Democrat and I'm not afraid or stupid enough to run away from it. Actually, I'm not even loyal or a fan-- it's simple: the enemy of my enemy is my friend. I'll join for now.

      The GOP is evil as fuck and I'll side with anybody, even Iran just to reset the GOP back to the corrupt 1980s GOP who look like Democrats compared to the fascists of today.

      Wake up (but don't go woke.)

  • They made tons of money betting.

  • by gewalker ( 57809 ) <Gary@Walker.AstraDigital@com> on Thursday April 30, 2026 @11:45PM (#66121602)

    GOP is a mutual fund that tracks the stock profiles of Republicans, NANC tracks the Democrats.
    Full discloure, I own just a little of each - I thought it would be interesting. There may well be similar funds - have not looked.

    Since Kalsi is subject to US regulators, it is illegal for US citizens to use Kalshi for insider trading. Of course, congress does not necessarily play by the same rules as us peons.

    • And as her +70.9% gains in 2024 were somewhat extraordinary, Nancy Pelosi spawned a host of similar apps - I believe autopilot has subsequently been broadened to include other lawmakers of both parties.

      Autopilot
      PelosiTracker.app
      Quiver Quantitative

    • by necro81 ( 917438 )

      GOP is a mutual fund that tracks the stock profiles of Republicans, NANC tracks the Democrats.

      The problem with such an approach is timing. When members of Congress execute these trades, they have months before they have to report it (and many of them couldn't even be bothered to do meet that lax deadline). So GOP and NANC are like index funds, if the S&P500 reported with a 3-month delay. Congress can still make curiously well-timed trades, but by the time you hear about it, it's late enough to not be of much use to you, plebian.

  • ... Senators and their offices ...

    What about their families, friends, etc.?

  • Politicians and their employees are banned: What about family members? This is the usual excuse for profiting from a government job: Creating an oversized 'inheritance'. But they don't let the working class climb the ladder of wealth.
  • That's a commendable step and naturally builds on the fact that information cannot be transferred between individuals in-the-know and others.

    Uhh... wait, what?

  • You just know that this "rule" was passed immediately after several senators placed bets on whether or not Congress would pass a rule limiting trading on prediction markets.
  • So they let friends or family know so they can make bets. Like Nancy Pelosi did with her husband.....
  • “‘Serving in Congress is an honor, not a side hustle.’ Cute slogan. Meanwhile the blockchain is over here coughing politely.” Bold move banning prediction markets. Now they can get back to the traditional, analog forms of insider trading they’re more comfortable with.
  • Today individuals work in government to enrich themselves, their families and friends by feeding off public tax dollars. The days of selfless public service dropped by the wayside long ago. Now it is all about power and getting rich at the expense of those they rule and dominate.

If a thing's worth having, it's worth cheating for. -- W.C. Fields

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