WASHINGTON, April 10, 2026 — A federal court in Arizona granted a temporary restraining order requested by the Commodity Futures Trading Commission barring the state from continuing criminal enforcement proceedings against CFTC-regulated designated contract markets, according to a CFTC press release.
The order was issued by the United States District Court for the District of Arizona after the agency sought emergency relief in litigation filed last week against Arizona.
The CFTC said its complaint seeks declaratory and injunctive relief over Arizona’s attempts to apply state law to event contracts listed by federally regulated markets. The agency argues federal law grants the commission exclusive authority over such products.
Federal preemption claims
The Arizona case is part of separate actions filed by the CFTC against Connecticut and Illinois involving similar jurisdictional claims over event contracts, according to the release.
The agency said the lawsuits seek court declarations that federal law preempts conflicting state enforcement efforts against designated contract markets offering event contracts.
Interim legal effect
A temporary restraining order is an interim measure intended to preserve existing conditions while the court considers further proceedings. The order does not resolve the underlying merits of the dispute.
The litigation is likely to be closely watched as courts examine the boundary between federal derivatives oversight and state enforcement authority in event-contract markets.
