The name comes from an early court description of speculative schemes with no more basis than so many feet of blue sky. Each state has its own act, administered by a securities commissioner, covering offering registration, agent licensing and antifraud enforcement.
Federal preemption removed much of the duplication for listed securities and covered offerings, but notice filings and fees survive, and state registration of investment-adviser-representative and registered-representative individuals is very much alive. The series-63 exam exists for exactly this.
State regulators remain aggressive on retail fraud, often moving faster than federal agencies on local boiler rooms, unregistered advisers and crypto offerings. They are also a realistic complaint route for smaller matters.
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