Seth Moulton Bans Congressional Staff from Prediction Markets

Representative Seth Moulton, a Democrat from Massachusetts, has instituted a ban on his congressional staff from participating in prediction markets, specifically targeting platforms like Kalshi and Polymarket. This policy, announced on March 25, 2026, is believed to be the first of its kind in Congress. Moulton emphasized that congressional staff exist to serve their constituents, not to profit from policy decisions and world events. He stated, “This is creating a perverse incentive structure that poses a genuine threat to American society today.”

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Prediction markets allow users to place bets on the outcomes of various events, including political and legislative developments. Recently, these platforms have come under scrutiny due to concerns about potential insider trading, particularly following well-timed trades related to significant geopolitical events, such as the ousting of Venezuelan President Nicolás Maduro and military actions involving the United States and Iran. Moulton's policy aligns with broader legislative efforts to regulate prediction markets, as several lawmakers have raised alarms about the ethical implications of such trading.

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In conjunction with Moulton's announcement, bipartisan legislation known as the "Prediction Markets Are Gambling Act" was introduced by Senators Adam Schiff and John Curtis. This bill aims to restrict prediction markets from listing sports bets and casino-style games, thereby classifying them alongside traditional gambling entities. Moulton has also co-sponsored a separate bill that would prohibit elected officials and their staff from trading on prediction markets based on insider information.

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Moulton's office reiterated that the ban applies to all staff members, including those in his district office, and is intended to prevent any trading on political, legislative, or regulatory outcomes. He remarked, “Insider trades on yes/no exchanges run counter to every principle of a clean, honest government that works for the people.” In response to the growing scrutiny, both Kalshi and Polymarket announced enhanced measures to prevent insider trading on their platforms.

Massachusetts Dem Bans Staff from Using Prediction Markets

While Moulton's policy has been praised by some for promoting ethical standards, critics argue that the ban may not address the underlying issues of regulation and oversight in prediction markets. Concerns remain about the effectiveness of self-regulation by these platforms and whether legislative measures will adequately prevent insider trading.

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As the conversation around prediction markets continues, further legislative actions are anticipated. The introduction of the PREDICT Act, aimed at preventing insider trading among congressional members and their staff, signifies a growing commitment to address these ethical concerns. The outcome of these legislative efforts will likely shape the future of prediction markets and their role in American political discourse.

Massachusetts Dem Bans Staff from Using Prediction Markets