FS Credit Opportunities Corp. v. Saba Capital Master Fund, Ltd. · ¶52

These provisions mirrored Section 29(b) of the Securities Exchange Act, which Congress had enacted just six years before. See 48 Stat. 903. Section 29(b), in turn, “drew from” States’ “enactment of their own ‘blue-sky’ statutes,” which were widely understood by both judges and scholars to create a private right to rescission. Aaron v. SEC, 446 U. S. 680, 711 (1980) (Blackmun, J., concurring in part and dissenting in part); see Brief for Securities-Law Scholars et al. as Amici Curiae 6–8 (collecting scholarship and state-court cases). Thus, in a 1970 case called Mills v. Electric Auto- Lite Co., 396 U. S. 375, the Court thought it “eminently sensible” that the “lower federal courts ha[d] read §29(b), which has counterparts in . . . the [ICA] and the [IAA],” as giving “the victim” the “right to rescind” the contract. Id., at 387– 388.

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