Equity crowdfunding is an Internet-enabled way for businesses or other organizations to raise money from general public. As an emerging internet-based financial vehicle with wide audience and low cost, equity crowdfunding has sprung up in China and been the new impetus for small and medium enterprises financing and development. At the same time, equity crowdfunding challenges the existing legal system of finance in China. There are many legal issues in actual operation, which means that it needs to be legalized and regulated as soon as possible. Risks exist and the relevant laws and regulations should be improved. Based on an analysis of China's situation concerned and an interpretation of the American JOBS Act, this thesis offers suggestions for improvement.