The Commodity Futures Trading Commission filed a motion in the U.S. District Court for the District of Arizona seeking a preliminary injunction and temporary restraining order to halt Arizona’s efforts to apply state criminal and gambling laws against CFTC-regulated prediction markets. The request builds on an earlier lawsuit filed with the Department of Justice challenging Arizona’s conduct as preempted. In the filing, the CFTC argues that the Commodity Exchange Act grants it exclusive jurisdiction over event contracts and preempts state laws that purport to regulate prediction markets. The agency has also filed complaints against Arizona, Connecticut, and Illinois seeking declaratory judgments and permanent injunctions to stop the states from enforcing preempted laws against CFTC registrants, noting that Arizona is pursuing criminal charges and that all three states sent cease-and-desist letters to CFTC-regulated entities. The Arizona motion seeks interim court relief while the broader litigation over federal preemption and the CFTC’s exclusive authority proceeds.

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