A federal judge on Friday blocked Arizona from continuing its criminal case against prediction market Kalshi, according to the ​Commodity Futures Trading Commission, which sued to prevent states from regulating the ‌industry.

The CFTC announced the ruling in a press release following a hearing before U.S. District Judge Michael Liburdi in Arizona.

The agency said the court granted its request for a temporary ​restraining order barring the state from continuing to pursue criminal charges against ​CFTC-regulated designated contract markets.

“Arizona’s decision to weaponize state criminal law against ⁠companies that comply with federal law sets a dangerous precedent, and the ​court’s order today sends a clear message that intimidation is not an acceptable tactic ​to circumvent federal law,” CFTC Chairman Michael S. Selig said in a statement.

Kalshi attorney Robert Denault praised the ruling in a social media post, saying “federal law is supreme” under the U.S. ​Constitution.

The Arizona Attorney General’s Office did not immediately respond to an email seeking ​comment on the ruling.

The criminal case against Kalshi is the first against the company by ‌a ⁠state amid an escalating battle between state gaming regulators and prediction market operators.