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Does the government regulate this industry?

The Regulation Crowdfunding (Reg CF) market was opened through Title III of the JOBS Act, and the rules are determined by the U.S. Securities and Exchange Commission (SEC) in Regulation Crowdfunding. In addition, a Funding Portal (like Fundify) or a broker-dealer that serves as a crowdfunding intermediary must register with the Financial Industry Regulatory Authority (FINRA) and adhere to FINRA rules.