US Congressman Moves to Ban Staff From Trading on Prediction Markets
Rep. Seth Moulton (D-MA) has implemented a policy banning his congressional staff from trading on prediction market platforms such as Polymarket and Kalshi, prohibiting the use of non-public information for betting on political, legislative, or geopolitical outcomes. Moulton cites concerns over the markets incentivizing insider trading and fostering corruption among government insiders. This move reflects broader bipartisan scrutiny and action on insider trading in prediction markets, highlighted by the introduction of the PREDICT Act by Reps. Adrian Smith (R-NE) and Nikki Budzinski (D-IL), which would prohibit key officials and their families from betting on political events, with civil penalties for violations. Additional legislative efforts aim to ban markets on terrorism, war, and sports-related events. Platforms such as Polymarket and Kalshi have responded by tightening anti-insider trading measures and enhancing surveillance. Analysts predict more congressional offices will adopt similar bans, though fully eliminating insider trading is considered unlikely, even with stricter rules and enforcement.
