Interstate Offering is a multi-state offering of securities, which requires that the issuer register with the SEC as well as with the states in which the securities will be sold.
Applying "Interstate Offering" to Securities Exams:
An interstate offering involves a security that is being offered in more than one state. If the offering were intrastate i.e.: being offered in only one state, that state would have jurisdiction over the offering. However, in the case of an interstate, or multi state, offering there is no one state that has jurisdiction; so the offering must be registered with the Federal regulator, which is the SEC. FYI: A federal entity will be the overseer in any matter involving interstate commerce.