What is the status of a security exempt from federal regulations under the Uniform Securities Act?

The correct answer indicates that a security exempt from federal regulations is never exempt from state regulations. Under the Uniform Securities Act, the exemption of a security at the federal level does not automatically confer exemption from state law. Each state has its own securities laws and regulations; thus, it is essential to evaluate the status of the security in the context of state law independently.

State laws may include specific exemptions or require different compliance measures that are not addressed at the federal level. Therefore, a security could be subject to state regulations even if it qualifies for an exemption under federal law. This is important for investors and registrants to understand, as it emphasizes the necessity of adhering to both federal and state regulations, ensuring full compliance with applicable laws in the jurisdiction where the security is being offered or sold.