Source: Fox News
Summary
The United States Senate has unanimously voted to ban senators and staff from playing in prediction markets, citing concerns about national security risks and potential influence on legislation. The ban applies to betting on real-world events, including the stock market, war, and terrorism, as well as the outcome of legislation and nominees. The move comes after a U.S. special forces soldier was busted for betting on the capture of former Venezuelan leader Nicolás Maduro, and a Senate candidate made money by betting on his own candidacy.
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Once again, the discussion returns to a familiar question.
The Senate’s ban on prediction markets follows a long-standing concern about lawmakers’ potential to profit from insider information. Despite this, Congress has yet to implement an across-the-board prohibition on stock trades by lawmakers. The STOCK Act, passed in 2012, only required additional financial disclosures, but did not ban lawmakers from trading stocks. The issue has been stalled for years, with some lawmakers pushing for a complete ban, while others are reluctant to extend it to the executive branch.
The stalemate is not surprising, given the long history of lawmakers’ involvement in stock trades. Former House Majority Leader Tom DeLay made hundreds of stock trades in 1999 and 2000, and former Rep. Louise Slaughter and Rep. Brian Baird were vocal advocates for a ban on Congressional stock trading.
The issue is not just about impropriety, but the perception of impropriety. The public’s distrust of Congress is fueled by the belief that lawmakers have special access to information that enables them to game the system for their own economic benefit.
As one lawmaker noted, the best predictor of future behavior is past behavior.
