Origin of blue-sky lawsaid to be so named from the comment made by a proponent of the first such law that certain business groups were trying to “capitalize the blue skies”
blue-sky law - Investment & Finance Definition
A state law that is designed to protect the public against securities fraud. Kansas was the first state to enact a securities registration law, in 1911. When announcing the legislation’s passage, lawmakers said, “The State was the hunting ground of promoters of fraudulent enterprises...so barefaced...that it was stated they would sell building lots in the blue sky.” Since then, state securities laws have been referred to as blue sky laws.
blue-sky law - Legal Definition