Blue-sky laws are regulated by which of the following entities?

Blue-sky laws are state regulations designed to protect investors from fraud in the sale of securities. These laws govern the offering and sale of securities at the state level and aim to ensure that investors receive meaningful information about potential investments while preventing deceptive practices.

The correct answer highlights that state securities regulators are responsible for overseeing and enforcing blue-sky laws. Each state has its own set of regulations, and these regulators play a crucial role in monitoring transactions within their jurisdiction, which includes registering securities offerings and licensing broker-dealers and investment advisers.

In contrast, while federal entities like the U.S. Securities and Exchange Commission are significant in regulating the securities industry, they primarily oversee federal securities laws rather than state-level blue-sky laws. The Financial Industry Regulatory Authority is also involved in self-regulatory aspects of the securities industry but does not enforce blue-sky laws; its focus is more on the behavior of its members and maintaining market integrity. The Federal Trade Commission, on the other hand, is primarily concerned with consumer protection and antitrust issues, rather than securities regulations. Therefore, the state securities regulators are the appropriate entities that enforce blue-sky laws.