With the proliferation of crowdfunding business models, regulators worldwide have taken different approaches to strike a balance between supporting innovation and safeguarding investor protection. Yet little is known about the source and scope of market failures in crowdfunding, or the adequacy of various regulatory tools in addressing them. This chapter introduces the overarching question of the study: How do market-based and regulatory mechanisms complement each other in reducing information asymmetry and ensuring investor protection in crowdfunding? The aim is to provide an economics perspective on the optimal regulation of crowdfunding and to empirically assess the effects of adopting tailored crowdfunding rules. This chapter also clarifies the scope of the analysis and the methodological approach.