The United States Senate has unanimously passed a resolution banning members from trading on prediction markets, effective immediately. 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.

“United States Senators have no business engaging in speculative activities like prediction markets while collecting a taxpayer-funded paycheck, period,” Moreno, who spearheaded the Senate prediction trading resolution, said in a statement. Minority Leader Chuck Schumer said it was “a good thing that the Senate is moving swiftly” and urged the House and the administration to enact similar rules. “Speaker Johnson should immediately do the same thing in the House,” Schumer said on the Senate floor.

The new law is largely attributed to a recent case where a senator cashed in on a prediction platform after having inside information. 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. Furthermore, on April 23, a U.S. Army Special Forces soldier, Master Sgt. Gannon Ken Van Dyke, was arrested on an indictment accusing him of classified information to make bets on Polymarket related to the American military mission that captured Venezuelan leader Nicolás Maduro.

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Similar resolutions have been discussed on the legislative level to avoid insider trading. In Congress, trading stocks is a heavily debated topic, with democrats leaning to ban congressional stock trading. Schumer also added Thursday that once the Senate returns from a one-week break in mid-May, he will work to ensure administration officials also “can’t get rich off betting markets.”