Bill to Curb State Blue Sky Laws Passes House

A bill to pre-empt state blue sky laws for securities listed on any SEC-approved exchange was passed July 12 by the House in a voice vote.

H.R. 5421, sponsored by Rep. Ed Royce (R-Calif.), would broaden the exemption from state registration for securities listed on any U.S. exchange. The exemption now applies only to stocks listed or eligible for listing on the New York Stock Exchange, NYSE MKT, or Nasdaq.

Adds.

The bill had Democratic support in committee and was likely to garner even more bipartisan support after additional provisions were added, including language to require any new exchanges ...