Senate Unanimously Bans Lawmakers and Staff from Prediction Markets

The United States Senate unanimously approved a ban on senators and staff participating in prediction markets.

"This is a national security risk," Senate Minority Leader Chuck Schumer, D-N.Y., said. "The very possibility that a member’s vote could be influenced by a bet is reason enough to slam the door shut."

Sen. Bernie Moreno, R-Ohio, pushed the rule change. Sen. Alex Padilla, D-Calif., amended it to cover Senate aides. The measure applies only to the Senate for now, as the House considers its own version.

"Engaging in any way in a prediction market or trying to place bets where we might have inside information deteriorates the confidence that our constituents have in us," Moreno said. "Our constituents have to know that our only guiding light is what's best for our state. What's best for the people of our states. And what's best for the United States of America."

"We must never allow Congress to turn into a casino," Schumer said. "Just the possibility that Members could have their votes influence because of betting is a reason enough to prohibit members from meddling in the prediction markets."

The bipartisan concern centers on wagering on legislation outcomes or nominee confirmations. Rep. Rob Wittman, R-Va., said similar House rules are needed. "Any place where your role in Congress has a potential for individual benefit, I think needs to be tightly controlled."

The Senate action follows a federal case against a U.S. special forces soldier who bet on the capture of former Venezuelan leader Nicolás Maduro using classified information. Virginia Senate candidate Mark Moran bet on his own campaign and profited after entering the race.

Schumer called for extending the ban to the executive branch, citing the Trump Administration's "troubling affinity to corruption and self-dealing."

Congress has long debated stock trading bans for lawmakers and aides, but no across-the-board prohibition exists. The 2012 STOCK Act, or Stop Trading On Congressional Knowledge, requires financial disclosures but does not bar trading.

Former President Obama urged a ban in his January 2012 State of the Union address: "Send me a bill that bans insider trading by Members of Congress and I will sign it tomorrow."

President Trump made a similar call in his February State of the Union message: "Let's also ensure that Members of Congress cannot corruptly profit from using insider information."

Late Rep. Louise Slaughter, D-N.Y., and former Rep. Brian Baird, D-Wash., pushed stock trading restrictions since 2006. Baird noted former House Majority Leader Tom DeLay, R-Texas, made hundreds of trades in 1999 and 2000.

"If there is a way to make a profit on that, somebody has probably already figured out a way to do it," Baird said. "And it's not illegal."

House Administration Committee Chairman Brian Steil, R-Wis., has a bill to limit lawmakers' stock trades. "If you want a day trade, go to Wall Street. Come to Washington to lead this country."

Rep. James Walkinshaw, D-Va., called stock trading by members wrong. "I don't know why it's been such a challenge in the House. I think any Member saying that they should be able to trade stocks is flat out wrong. I think it degrades trust in the institution. Even for those members who are not trading on inside information."

House Minority Leader Hakeem Jeffries, D-N.Y., opposed executive branch stock trading. "There is zero justification and rationale for allowing a president of any party or a vice president of any party, to be able to engage in stock trading while they have the awesome power of the presidency, vice presidency and executive branch in their hands."

Rep. Yassamin Ansari, D-Ariz., said public awareness is growing. "We know there are many colleagues who do still trade stocks. I think the American public is much more informed on this topic now. And this is very unpopular. So I do think the tide is changing and it will become untenable for any member to to be supportive of it. I think more people have more information. So what a Member of Congress was able to get away with even five years ago just is not possible today."