WASHINGTON, April 9, 2026 — The Commodity Futures Trading Commission said it has filed a motion in federal court seeking a preliminary injunction and temporary restraining order to halt the state of Arizona’s efforts to apply criminal and gambling laws to CFTC-regulated prediction markets, according to a press release.
The motion was filed in the U.S. District Court for the District of Arizona and seeks to prevent enforcement actions that the agency said are preempted by federal law.
Prior federal lawsuit as procedural basis
The CFTC said the filing builds on a lawsuit submitted last week in coordination with the U.S. Department of Justice challenging Arizona’s actions.
CFTC Chairman Michael S. Selig said the state’s use of criminal law against companies operating under a federal regulatory framework “sets a dangerous precedent.”
The agency said it is seeking court intervention to block what it described as efforts to apply preempted state laws to federally regulated entities.
Multi-state complaints and requested relief
The CFTC said it has filed complaints against Arizona, Connecticut, and Illinois seeking declaratory judgments affirming its exclusive jurisdiction over event contracts.
The agency is also requesting permanent injunctions preventing the states from enforcing laws it said are preempted by federal law.
According to the CFTC, all three states issued cease-and-desist letters to CFTC-regulated entities, while Arizona has additionally pursued criminal charges.
Federal jurisdiction under the Commodity Exchange Act
The CFTC said it has “clear and longstanding exclusive jurisdiction” to regulate event contracts under the Commodity Exchange Act, which it said preempts state laws purporting to regulate prediction markets.
