Representative Seth Moulton, a Democrat from Massachusetts and 2020 presidential candidate, meets with volunteers during a campaign stop in Manchester, New Hampshire, on Tuesday, April 23, 2019.
Adam Glanzman | Bloomberg | Getty Images
Rep. Seth Moulton, D-Mass.,, on Wednesday announced an office-wide policy barring his congressional staff from using prediction market platforms like Kalshi and Polymarket.
“Congressional staff and the Members they work for exist to serve the constituents of the districts they represent, not to profit off of the very policy decisions and world events that we are here to respond to,” Moulton said in a statement posted to X. “My office has not, and will not, engage in these trades that run counter to every principle of a clean, honest a government that works for the people.”
A spokesperson for Moulton said he believes the policy is the first of its kind on Capitol Hill. It comes amid a wave of proposals from lawmakers seeking to rein-in prediction markets, which allow users to place bets on the outcome of a wide-range of events, from basketball games to Oscars best picture winners.
The platforms have come under intense scrutiny from some states and casinos, who argue prediction markets offer a loophole for gambling and should be state regulated. Lawmakers have also recently expressed concern about the potential for insider trading on prediction markets, in the wake of well-timed trades on world events like the ouster of Venezuelan President Nicolas Maduro and the war in Iran.
Moulton co-sponsored legislation that would bar elected officials from placing prediction market bets on insider information.
“Prediction markets have become a playground for corrupt insiders who are able to place bets on things like election outcomes, wars, and even the deaths of public figures,” Moulton said in his statement. “This is creating a perverse incentive structure that poses a genuine threat to American society today.”
Spokespersons for Kalshi and Polymarket didn’t immediately respond to emails seeking comment.
Kalshi and Polymarket both announced new insider trading protections on their platforms this week.
Disclosure: CNBC and Kalshi have a commercial relationship that includes a CNBC minority investment.
