New York state passed a law allowing entrepreneurs to raise capital through crowd funding. A regulation by the Securities and Exchange Commission (federal agency) makes crowd funding for business start-ups illegal. Can Ed Entrepreneur legally start his New York City deli business with money raised by crowd funding?

a.Only if the crowd funding effort raises enough money for him to get started.

b.Maybe if he can do it without the SEC finding out.

c.No, federal law takes precedent over state law. This funding activity is expressly illegal under federal law.

d.Yes, because the deli business will be a purely local business, not falling under the Interstate Commerce Clause.