A bipartisan bill would prohibit federal lawmakers from placing trades on prediction markets.

The bill proposed by Sens. Kirsten Gillibrand, D-N.Y., and Dave McCormick, R-Pa., would ban members of Congress, the president, the vice president, and senior executive branch officials from placing trades at sites such as Kalshi and Polymarket.

The Senate on Thursday unanimously passed a resolution barring senators and their staffers from trading on prediction markets.

Gillibrand and McCormick's bill would also force the Commodity Futures Trading Commission to weigh whether it needs to update its regulations to prevent insider trading on prediction markets.

The bill also enables the CFTC to prohibit prediction markets from taking trades on war, violence, and terrorism on a case-by-case basis.

"Elected officials should be working for the people they represent — not lining their own pockets with insider information," Gillibrand said. "Americans deserve financial markets that are fair, transparent, and not tilted in favor of those with privileged access."

"This commonsense, bipartisan bill puts strong guardrails in place to protect consumers, prevent insider trading, and hold prediction market platforms to standards of integrity," Gillibrand added.

Gillibrand and McCormick's bill comes after an Army special forces master sergeant was charged with using classified intelligence about the capture of then-Venezuelan President Nicolas Maduro to profit on the prediction market Polymarket.

Prosecutors say he cleared more than $400,000 on the trades in what authorities describe as the first criminal insider-trading case involving a U.S. event-betting platform.

Gannon Ken Van Dyke has pleaded not guilty.

Last week, Kalshi announced it has suspended and fined three political candidates who made trades on the regulated prediction market.

Mark Moran, an independent running for U.S. Senate in Virginia, Ezekiel Enriquez, a former Republican congressional candidate in Texas, and Matt Klein, a Minnesota state senator running for Congress as a Democrat, were caught making trades, Kalshi said.

Kalshi and Polymarket both praised the Senate vote.

"I applaud the Senate for passing this resolution to ban Senators and their offices from trading on prediction markets," Kalshi CEO Tarek Mansour wrote in a post on social media.

"Kalshi already proactively blocks members of congress and enforces against insider trading. This is a great step to increase trust in our markets by making it an industry standard," Mansour added.

Mansour said he wanted to see the House of Representatives pass a similar vote.

"We're in full support of this. Our Rulebook & Terms of Service already prohibit such conduct, but codifying this into law is a step forward for the industry," Polymarket wrote on social media. "Happy to help move this forward however we can."

• Senators, Staff Barred From Prediction Markets
• Kalshi Suspends 3 Political Candidates for Trades