The Commodity Futures Trading Commission (CFTC) announced that the US District Court for the District of Arizona granted a temporary restraining order barring Arizona from continuing to pursue criminal charges against CFTC-regulated designated contract markets (DCMs) in connection with prediction market event contracts. The order follows the CFTC’s filing of a federal complaint seeking to enjoin Arizona from enforcing state laws the agency argues are preempted by federal law and to obtain a declaratory judgment that federal law grants the CFTC exclusive authority to regulate event contracts. The CFTC also filed similar complaints against Connecticut and Illinois, and in the Arizona matter it has sought a preliminary injunction in addition to the temporary restraining order. The litigation will proceed on the CFTC’s request for preliminary and permanent injunctive relief against Arizona’s enforcement actions, alongside the related federal preemption cases against Connecticut and Illinois.
Commodity Futures Trading Commission 2026-04-10
Commodity Futures Trading Commission secures court order halting Arizona criminal actions against CFTC-regulated prediction markets
The Commodity Futures Trading Commission announced that the US District Court for the District of Arizona granted a temporary restraining order barring Arizona from pursuing criminal charges against CFTC-regulated designated contract markets over prediction market event contracts. The order follows the CFTC’s complaint seeking to enjoin Arizona from enforcing allegedly preempted state laws and to obtain a declaratory judgment that federal law grants it exclusive authority over event contracts. The litigation will proceed on the CFTC’s request for preliminary and permanent injunctive relief against Arizona’s enforcement actions.