You don’t need a law degree to spot the potential (and realized) problems with Crowd Funding.
Now in our third decade, the idea of crowd-funding came from our model, though we took the precautions on compliance with the advice of our members who are former SEC Prosecutors, as well as other legal minds, and a network of those who are accredited.
CrowdFunding, while novel, was never a good idea.
The hardest to be hit will likely be Start-Up Weekend.
Here is a good article:
http://rachid-sefrioui-venture-capital.blogspot.com/2011/07/sec-comes-down-hard-on-crowdfunding.html