US Congressman Moves to Ban Employers from Trading in Futures Markets

A market analyst predicts that many congressional offices will follow the lead of Massachusetts Democrat Seth Moulton (D-MA) after becoming one of the first members of Congress to ban his employees from trading on platforms like Polymarket and Kalshi.

From Wednesday, the schedule of the office of Rep. Moulton prohibits all employees, including district, law, communications, and staff, from trading or holding positions on political, legal, regulatory, or geopolitical consequences, or any information that is legally taught.

“Prediction markets have become a playground for fraudsters who can bet on things like election results, wars, and even human deaths,” Moulton said in a statement. words. “This is creating the wrong motivation that is scaring the American people today.”

The ban comes as there is pressure from lawmakers on both sides of the aisle to crack down on insider trading in the stock market, a concern that has arisen as anonymous traders have posted large political profits, raising suspicions that people in government are spending large sums of money that are not public.

“I think everyone is well aware of the potential for insider trading around what the government is doing,” market analyst Dustin Gouker said. Decryptknowing that he hopes that “many other Congressional offices will do the same, even if it is done publicly.”

“I think it’s clear that insider trading in things going on in Washington is not very visible or acceptable in CFTC-regulated futures markets,” Gouker said. “Creating clear and meaningful penalties in the law would make it clear,” although he acknowledged that some would still try.

Also on Wednesday, Reps. Adrian Smith (R-NE) and Nikki Budzinski (D-IL) he started PREDICT Actor Prohibiting Real Time Use and Fraud Under the Congressional Trading Act.

The law seeks to prohibit members of Congress, their spouses and dependent children, the President and Vice President, political appointees, and other senior officials from trading in political, election, or government action on the prediction markets.

Violations can result in a government penalty of 10% on the value of the transaction, including full forfeiture of profits that will be paid to the US Treasury.

Lawmakers have moved quickly in recent days, with Senators Adam Schiff (D-CA) and John Curtis (R-UT) last week. to request an injunction on contracts related to games on platforms registered by the CFTC, followed on Tuesday by Sen. Chris Murphy (D-CT) and Rep. Greg Casar (D-TX) showing BTS OFF Act combating markets related to terrorism, genocide and war.

Pushing follows the evaluation of disputed bets The US is attacking Iran is the most profitable wager built with the capture of Nicolás Maduro of Venezuelaraising concerns about potential insider trading.

With lawmakers increasing scrutiny, Polymarket and Kalshi launched strong anti-insider trading measures, including strict regulations and enhanced monitoring and control capabilities.

Gouker, however, played down expectations of how clean markets would be.

“Getting to 100% is probably an impossible thing,” he said, referring to the elimination of insider trading, but he added that “good policies, regulations, and monitoring can make it much more difficult.”

Decrypt has reached out to Polymarket and Kalshi for comment.