Blue Sky: The Fifty Regulators Behind the One You Are Watching

Inside Securities Law with Frederick M. Lehrer · Aug 26, 2026 · 3m

Federal securities law gets the attention. State securities law — Blue Sky law — is where a surprising number of offerings actually go wrong, because issuers forget it exists.

The name comes from an early court decision describing speculative schemes with no more basis than so many feet of blue sky. Every state has its own securities statute, its own regulator, and its own registration and exemption framework. Complying with the SEC does not satisfy them.

Here is the framework you need.

Some offerings are covered securities under the National Securities Markets Improvement Act, which preempts…