US Senators Ban Themselves From Prediction Markets Trading (cnbc.com) 8
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."
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."
Pinky Swear! (Score:4, Insightful)
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.
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Some senators, like Mark Kelly, have been trying to pass a ban on any stock trading by senators at all... but it hasn't gotten a lot of traction, so many of them don't want to give up their sweet sweet insider profits.
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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.
Only after (Score:2)
They made tons of money betting.
If you can't beat 'em, join 'em. (Score:1)
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.