Rep. Seth Moulton, a Massachusetts Democrat and 2020 presidential candidate, meets with volunteers during a campaign stop in Manchester, New Hampshire, Tuesday, April 23, 2019.
Adam Glanzman Bloomberg | Getty Images
Representative Seth Moulton, D-Massachusetts, on Wednesday announced an agency-wide policy banning congressional staff from using prediction market platforms such as Calci and Polymarket.
“Congressional staff and the legislators they represent exist to serve the constituents of the districts they represent, not to profit from the very policy decisions or world events we are here to respond to,” Moulton said in a statement posted to X. “My office has never been involved in, and will not continue to engage in, any of these transactions that violate every principle of a clean and honest government working for the people.”
A spokesperson for Mr. Moulton said he believes the policy is a first on Capitol Hill. The announcement comes amid a flurry of proposals from lawmakers to regulate prediction markets, which allow users to bet on the outcome of a wide range of events, from basketball games to the Best Picture Oscar winner.
These platforms have come under intense scrutiny from some states and casinos, which say prediction markets are a gambling loophole and should be regulated by states. Lawmakers have recently raised concerns about the potential for insider trading in prediction markets following well-timed trades around world events such as the ouster of Venezuelan President Nicolas Maduro and the Iran war.
Mr. Moulton co-sponsored a bill that would prohibit elected officials from betting their market predictions on insider information.
“Prediction markets have become a playground for corrupt insiders who can bet on election outcomes, wars, and even the death of public figures,” Moulton said in a statement. “This is creating a perverse incentive structure that poses a real threat to American society today.”
Spokespeople for Calci and Polymarket did not immediately respond to emails seeking comment.
Calci and Polymarket this week announced new insider trading protections on their platforms.
Disclosure: CNBC and Kalsi have a commercial relationship that includes a minority investment in CNBC.
