The term blue sky laws is attributed to a court opinion describing the purpose of state securities laws as working to prevent the "speculative schemes which would have no more basis than so many feet of blue sky."

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The term blue sky laws is indeed attributed to a court opinion, which described the purpose of state securities laws as preventing fraudulent or unscrupulous securities offerings that lacked a legitimate underlying business or asset, and which were offered solely on the basis of speculative promises. The opinion used the phrase "speculative schemes which have no more basis than so many acres of blue sky." This led to the use of the term "blue sky laws" to describe state securities regulations.

The Term Blue Sky Laws Is Attributed to a Court