Recent news of the imminent closer of many Chinese exchanges is the direct result of them dealing in ICOs, I've been shocked for the longest time other countries have done so, allowing ICO's to fly under regulators radar, however its only just a matter of time.
It was obious but don't worry goverment would ban crypto becouse some bad actrors will start using it.
This common in life excuses like terrorism pedofilia you don't realy need ICO to do that.
ICO is way to move arround IPO regulations - but for me this is ok people have freedom to fail at investment too.
ICOs are making harder life for BTC but same time people are greedy and want more ICO more x10 x3 ; ) in week this is casino sometimes.