The Commodity Futures Trading Commission (CFTC) 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 to CFTC-regulated prediction markets. The request builds on a federal lawsuit filed with the Department of Justice challenging Arizona’s conduct as preempted by federal law. The CFTC has also filed complaints against Connecticut and Illinois, and all three states have sent cease-and-desist letters to CFTC-regulated entities; Arizona has additionally pursued criminal charges. Across the cases, the CFTC is seeking declaratory judgments that the Commodity Exchange Act gives it exclusive authority over event contracts and permanent injunctions preventing states from enforcing what the agency describes as preempted state laws against its registrants.
Commodity Futures Trading Commission 2026-04-09
Commodity Futures Trading Commission seeks court order to block Arizona criminal and gambling enforcement against CFTC-regulated prediction markets
The Commodity Futures Trading Commission has asked the U.S. District Court for the District of Arizona for a preliminary injunction and temporary restraining order to stop Arizona from applying state criminal and gambling laws to CFTC-regulated prediction markets. The motion builds on a federal lawsuit with the Department of Justice and parallels complaints against Connecticut and Illinois, with the CFTC seeking declaratory judgments that the Commodity Exchange Act provides exclusive authority over event contracts and permanent injunctions against allegedly preempted state laws.