Arizona federal court bars state action against CFTC-regulated event contracts
The District Court for Arizona issued a preliminary injunction on 5 May 2026 barring the state from taking criminal or civil action against event contracts traded on CFTC-regulated designated contract markets. The ruling followed Arizona’s prosecution of Kalshi for operating without a state licence and the CFTC and Department of Justice’s challenge to the state’s enforcement.
The injunction limits Arizona’s enforcement against covered event contracts while the dispute over state and federal authority continues.