Complex sentence: Prior to the enactment of the federal securities laws and the creation of the SEC, there existed so-called Blue Sky laws that were enacted and enforced at the state level and regulated the offering and sale of securities to protect the public from fraud.
Split into simpler sentences: Prior to the enactment of the federal securities laws and the creation of the SEC, there existed so-called blue sky laws. They were enacted and enforced at the state level, and regulated the offering and sale of securities to protect the public from fraud.