The legal challenge posed by Arizona Attorney General Kris Mayes against the prediction market Kalshi seems to be facing an obstacle.

On Friday, the Commodity Futures Trading Commission revealed that it has secured a temporary restraining order that halts the state’s criminal case against Kalshi (whose CEO Tarek Mansour is featured above).

“Arizona’s choice to leverage state criminal laws against compliant companies under federal law creates a troubling precedent, and today’s court ruling clearly indicates that coercion is not a permissible strategy to bypass federal regulations,” stated CFTC Chairman Michael S. Selig.

While the CFTC typically comprises five commissioners, Selig presently stands as the sole member following his confirmation in December and the exit of former acting chairperson Caroline Pham (who transitioned to crypto firm MoonPay).

Arizona has charged Kalshi, alleging that the company has been running an unlicensed gambling operation in the state. The announcement regarding the restraining order follows just days after a federal judge permitted Arizona’s case to proceed, as reported by Bloomberg.

Additionally, the CFTC has initiated lawsuits aiming to block similar actions from advancing in Connecticut and Illinois.