U.S. SEC to scale back states' power to review some public stock deals

U.S. regulators are poised to reduce the states' powers to police some public stock deals, a move that advocates say will spur more capital-raising and critics claim could lead to more fraud. The final rule would preempt state "blue sky laws" for stock deals valued at more than $20 million and up to $50 million, meaning those companies would not have to register their deals in every state before they can be sold. Smaller Reg A stock deals between $5 and $20 million would still face state-level reviews where they are sold. The final rule by the SEC aims to try and strike a compromise with the North American Securities Administrators Association, which has been lobbying fiercely to protect its oversight powers and has urged the federal agency not to pre-empt any of the deals from state oversight.



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