The U.S. Senate has unanimously approved new rules that ban senators from placing bets on prediction markets, closing a potential avenue for lawmakers to profit from insider information.

The new regulations specifically prohibit senators from wagering on platforms such as Kalshi and Polymarket, which allow users to bet on the outcomes of political events, elections, and policy decisions. These markets have grown in popularity as alternative methods for gauging public sentiment and predicting political outcomes.

The rule change addresses concerns about potential conflicts of interest, given that senators have access to non-public information that could influence market outcomes. Lawmakers often receive briefings and participate in discussions that could provide advantages when betting on political or policy-related events.

The unanimous passage suggests broad bipartisan agreement that such betting activities could undermine public trust in the legislative process. The new rules join existing ethics guidelines that govern other aspects of congressional financial activities and investments.

Prediction markets have experienced significant growth in recent years, particularly during election cycles, as they offer real-time assessments of political probabilities. The platforms allow users to buy and sell contracts based on whether specific events will occur, with prices reflecting the collective wisdom of market participants.