Regulation can be seen as positive if we talk about getting mass adoption.
99% of the people are not willing to "take the risk" of using the "unknown and scary" bitcoin.

99% of people simply do what they are told by media, like opening bank accounts to be tracked 24/7, get life-long loans without knowing the rate of interest, etc etc.

If they are told bitcoin is good to use, they will start doing so, at a very basic level, following every instruction and being subject to regulation and tracking.

Those who understand the reality of bitcoin and cryptocurrency will take advantage of its full potential, and its price spike due to mass adoption.

One of the things I learned from cryptocurrency is that general public asks for freedom, but they don't really want freedom. They just want to complain about their lives.

To me, understanding that decentralization will never be a reality for the masses, the fact that governments accept bitcoin, even regulating it, is amazing news.