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The ease of demonstrating ownership in international waters, no state registration numbers, for some lenders it's a requirement when financing a vessel.
Yes, however, the vessel must be deleted from coast guard documentation before applying for a state title.
Every vessel that is registered with the Coast Guard is assigned an Official Number. This number must be displayed on an interior wall of the vessel measuring 3" in height and preceded with the letters "NO." The vessel must also display a hailing port with a City and State as well as a vessel name.
Coast Guard Certificate of Documentation can be renewed annually or up to five years.
In most states, yes, registration is required, however, check with your local licensing office to confirm.