From www.theracetothebottom.org - February 3, 2015 6:42 PM
Congress in the JOBS Act provided an exemption from registration for certain crowdfunding offerings.  The SEC has a rule proposal pending.  The difficulty in this area is balancing the costs of investor protection against the impediments to capital raising.  The issues are exacerbated by the limits ($1 million) on the size of any offering relying on the crowdfunding exemption.