A US Senate that has struggled to pass legislation on crypto market structure decided on Thursday to ban itself from participating in prediction markets.
Acting on a simple 14-line resolution pushed by Ohio Republican Sen. Bernie Moreno, the Senate unanimously agreed to impose a restriction between members and increasingly popular and controversial betting platforms that have drawn scrutiny over insider trading activities and struggles over who has regulatory jurisdiction.
“U.S. Senators do not have to engage in speculative activities like prediction markets while receiving a taxpayer-funded salary, period,” Senator Moreno said in a statement Thursday. “Serving in Congress should never be about finding new ways to make a profit; rather, it should be about delivering results for the American people. »
Effective immediately, the Senate rules change now states that senators cannot enter into “any agreement, contract, or transaction providing for a purchase, sale, payment, or delivery that is contingent upon the occurrence, non-occurrence, or extent of the occurrence of a specific event.” »
Political betting has grown in popularity and some candidates have already been penalized for betting on their own races.
One of the major platforms, Polymarket, posted on social media site X that the company “fully supports” the Senate’s action. Polymarket, which is not expected to operate in the United States after a settlement with the CFTC in 2022, noted that its user rules “already prohibit such behavior, but codifying it into law is a step forward for the industry.”
Betting on Polymarket currently gives Democrats an equal chance of reclaiming the Senate majority in the November elections. Democrats have generally been more critical and wary of this fast-growing industry.
