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., announced an office-wide policy on Wednesday barring his congressional staffers from using prediction market platforms like Kalshi and PolyMarket.
“Congressional staffers and the members they serve exist to serve the constituents of the districts they represent, not to profit from the policy decisions and world events we are here to respond to,” Moulton said in a statement. Posted on x. “My office has not and will not engage in these businesses, which are contrary to every tenet of a clean, honest government that works for the people.”
A spokesperson for Moulton said he believed the policy was 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 bet on the outcome of a wide range of events. basketball games To oscar best picture winner.
The platforms have come under intense scrutiny from some states and casinos, who argue that prediction markets offer a loophole for gambling and should be regulated by the state. Lawmakers have also recently expressed concern about the potential for insider trading on prediction markets in the wake of real-time trading on world events such as the ouster of Venezuelan President Nicolas Maduro and the war in Iran.
Moulton co-sponsored legislation that would bar elected officials from placing forecast markets betting on inside information.
“Prediction markets have become a playground for corrupt insiders who are able to bet on things like election outcomes, wars and even the deaths of public figures,” Moulton said in his statement. “It is creating a distorted incentive structure that poses a real threat to American society today.”
Spokespeople for Kalshi and Polymarket did not immediately respond to emails seeking comment.
Kalash 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.