So Crowdfunding Does Need Regulation

So are we to understand that regulation is a good thing and necessary to protect investors in the crowd? Well it appears so. On March 23, 2012, at 2:29 p.m. EDT Marketwire issued a press release announcing the creation of the Crowdfund Intermediary Regulatory Association (CFIRA). Its mission is to provide investors “protection and market integrity through effective and efficient regulation of those within the crowdfunding industry”. But wait on March 21, 2012, the same Marketwire issued a press release announcing the launch of the Crowdfunding Accreditation for Platforms Standards (CAPS) program. “The CAPS program establishes standards for crowdfunding operations and aims to protect investors from fraud.”

I and others have been writing for several months that the notion of an unregulated format on the Internet for the raising of capital was an invitation for fraud. I guess the Crowdfunding supporters have finally realized that we were right. I applaud this move to protect investors and legitimate businesses seeking to do business on this new platform.

 

© Copyrighted 2012 by Sharon M. Davison. Reuse permitted with attribution.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s