WASHINGTON — The Commodity Futures Trading Commission filed a motion Wednesday in the U.S. District Court for the District of Arizona asking the court for a preliminary injunction and temporary restraining order that would halt Arizona’s efforts to apply state criminal and gambling laws against CFTC-regulated prediction markets. This motion builds on last week’s filing, with the Department of Justice, of a lawsuit challenging Arizona’s preempted conduct.

“Arizona’s decision to weaponize preempted state criminal law against companies that comply with a comprehensive federal regime sets a dangerous precedent,” said Chairman Michael S. Selig. “The CFTC is committed to vigorously defending its exclusive authority over prediction markets. We are asking the court to send a clear message that intimidation is not an acceptable tactic to circumvent federal law.”

The CFTC has filed complaints against Arizona, Connecticut, and Illinois, seeking declaratory judgments that federal law grants the CFTC exclusive authority to regulate event contracts and requesting permanent injunctions preventing the states from enforcing preempted state laws against its registrants. In addition to Arizona pursuing criminal charges, each of the three states had sent cease and desist letters to CFTC-regulated entities. The CFTC has clear and longstanding exclusive jurisdiction to regulate event contracts under the Commodity Exchange Act, which preempts state laws purporting to regulate prediction markets.