Published on: March 25, 2026, 07:12h.
Updated on: March 25, 2026, 07:13h.
- Seth Moulton is the inaugural Congress member to enforce such a ban
- This prohibition extends to all of his staff, including those in the Massachusetts district he serves
- He labels prediction markets as “playgrounds for unethical insiders”
Representative Seth Moulton (D-MA) has implemented a ban barring his staff from participating in prediction markets, marking him as the first member of Congress to take this step.
In an official statement, Moulton—who represents Massachusetts’s sixth district—declared that this restriction applies to all staff members, including those in both his Capitol Hill and district offices. The primary aim of this policy is to prevent his team from engaging in trading contracts concerning “political, legislative, regulatory, geopolitical outcomes, or any information obtained in an official capacity.”
“Prediction markets have evolved into a playground for unethical insiders who profit from betting on events like elections, wars, and the deaths of public figures,” Moulton expressed in his statement. “This creates a detrimental incentive structure that genuinely threatens American society today.”
The press release did not address sports event contracts, typically the most traded instruments on platforms like Kalshi and Polymarket.
Heightened Scrutiny on Prediction Market Insider Trading
Concerns regarding insider trading on binary options exchanges are gaining traction, following accusations that certain political insiders—including potential employees of the White House and key congressional figures—have made significant profits based on insider knowledge of events like the U.S. capture of former Venezuelan President Nicolas Maduro and the Iran conflict.
The challenge of monitoring insider trading on prediction markets lies in the absence of regulations that govern such activities, unlike traditional financial markets. Some congressional members are seeking to change this, with proposed legislation aimed at preventing specific federal employees from trading on event contracts related to policy matters.
Notably, Moulton’s announcement coincided with the introduction of the bipartisan PREDICT Act, or the Preventing Real-time Exploitation and Deceptive Insider Congressional Trading Act, by a couple of his colleagues. If enacted, this legislation would prohibit both congressional members and their staff from trading in contracts tied to policy and political events.
On Monday, platforms Kalshi and Polymarket revealed upgraded protocols to combat insider trading. Kalshi has already prohibited congressional members from trading political and policy event contracts on its platform, with this ban now extending to candidates looking to wager on their own campaigns.
Moulton Stresses the Dangers of Insider Trading
Moulton emphasizes that members of Congress and their staff should concentrate on fulfilling their responsibilities to constituents, not on profiting from privileged data. He stated that his staff has not been involved in prediction markets.
“Insider trading on yes/no exchanges conflicts with every principle of transparent and accountable government that serves the people,” Moulton concluded. “I will consistently hold myself and my team to the highest ethical standards, and I urge all elected officials in America to do the same.”