An intriguing phenomenon has occurred. Regulators have recently noticed that there is a sharp rise in Internet crowd-funding sites.
Ironically, the SEC still has not promulgated rules for allowing small businesses to raise capital online. The SEC believes that those rules are months away. Nonetheless, regulators estimate that there are almost 9,000 websites already dedicated to crowd-funding.
Regulators are deeply concerned that the proliferation of these sites could create more trouble for regulators, who are charged with enforcing thse rules and ensuring investor safety.