Vessel documentation is a national form of registration. It is one of the oldest functions of Government, dating back to the 11th Act of the First Congress. Documentation provides conclusive evidence of nationality for international purposes, provides for unhindered commerce between the states, and admits vessels to certain restricted trades, such as coastwide trade and the fisheries. Since 1920, vessel financing has been enhanced through the availability of preferred mortgages on documented vessels.
U.S. Coast Guard documentation of a vessel is considered the preferred method of recording ownership of your boat with the government. As a national form of registration, you receive benefits that would not otherwise be available under state registration and is generally considered a more prestigious form of registry.