A federal covered adviser with $250 million AUM and no place of business in State X solicits and enters into contracts with seven individual clients in State X. What action must the adviser take under the USA?

1. ARegister with State X
2. BCease providing advice to individual clients in State X
3. CSubmit a notice filing and pay any required fee in State X✓ Correct answer
4. DNo action is required if clients are all accredited investors

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