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On October 6, CNBC reported that Democratic Congressman Don Davis from North Carolina proposed the "Ban on Betting on One's Own Election Act" on Monday, aiming to prohibit federal office candidates from trading contracts related to their own elections in prediction markets. Violators would face a fine of $10,000 or three times their net trading profits, whichever is higher. This proposal stems from the case of Davis's Republican opponent, Laurie Buckhout, who was previously penalized by Kalshi for trading contracts related to her own candidacy. Buckhout reached a settlement with the platform in August, paying just under $2,600 in fines and being suspended from using Kalshi for three years. She stated at the time, "I did bet on myself, indeed. It was a stupid mistake." The prediction market platform had previously imposed its own restrictions on candidates trading in their own election contracts to prevent insider trading. Davis hopes to formalize these restrictions into law. However, both the House and Senate plan to reconvene only after the midterm elections, making it unlikely that this proposal will be implemented during the current election cycle. The Senate passed a resolution in April banning senators and staff from participating in prediction market trading, but it did not cover candidates who are not current senators.

According to Bitcoin.com News, US Senator Kirsten Gillibrand stated on August 23 that Congress should prohibit the president, their spouse, and senior officials from issuing, initiating, or profiting from cryptocurrency during their terms, and incorporate this ethical ban into the Digital Asset Market Structure Act. A survey revealed that 63% of respondents believe that the cryptocurrency profits of Trump and his family are inappropriate. Trump disclosed in his annual report that his cryptocurrency-related income exceeded $1.4 billion in 2025. The controversy extends to the Senate's Digital Asset Market Clearity Act, which is set for its first procedural vote in the Senate on September 15. Kirsten Gillibrand expressed that she would not support allowing the president to profit from public office with taxpayer backing.

In a significant ruling, Anthropic has won its lawsuit against the Pentagon. U.S. Federal Judge Rita Lin determined that the government's classification of Anthropic as a 'supply chain risk,' which led to federal agencies ceasing the use of Claude and restricting defense contractors from collaborating with the company, was unlawful. The court found that these measures were retaliatory actions against Anthropic for its public criticism of government AI policies. The judgment heavily criticized the evidence submitted by the government, noting that the rationale for the entire set of measures was based on a mere four-page memorandum, which was issued after two of the three measures were already in place. The government had previously expressed concerns that Anthropic could modify the model through a 'backdoor' after deployment, but court documents confirmed that Anthropic does not have such access. The judge concluded that the government's remaining justification was simply 'distrust' of Anthropic and an intent to publicly assert authority over the company. This conflict initially arose from restrictions on the military use of Claude. Anthropic has maintained that the model cannot be used for mass surveillance of Americans or fully autonomous weapons, while the Pentagon insisted on its use for all lawful purposes. The court also clarified that the ruling does not compel the military to continue using Claude. The Pentagon can still legally change suppliers but can no longer rely on the 'supply chain risk' justification to ban Anthropic.