I think regulations will bring some calm to a very chaotic situation. I read somewhere (I'm too lazy to find the reference) that there are about 60 new ICOs a week. Many of those are on face value not really worth anything - some of the ideas don't make much sense and the link to blockchain is tenuous at best. So in this regard, regulation in the ICO space will calm things down and hopefully eradicate the scams.

However, I don't believe regulation will be easy to implement, mostly due to the entire system being decentralised. It will be virtually impossible to police unless the entire world's countries agree to implement the regulations.

In reality, we will likely see a mass correction through self regulation. People will become aware of the pitfalls and and the dynamics at play, and understand the pros cons of an ICO more pertinently. If there are government imposed regulations, it will probably fall along the same lines as anti money laundering and KYC laws, with guidelines for both backers as well as companies offering the tokens.

I think right now, however, the more conservative amongst us are hoping some sort of regulatory framework will be published to at least take away some of the uncertainty.