It was just the beginning!
Rulers (or governments) are trying to keep disruptive technologies under control and basically just try to utilise it for their own interests by exploiting the weaker as much as they can until the basis for realising their plans is set.
So when the infrastructure for high finance of cryptos is set, I believe they'll open up the ecosystem for the mainstream.
I think its okay if they stop those ICO's but its good that it will be regulated, screened and studied before it will be open to public. Or, it is better to fund some startup in kick starter projects as we will see the development and how the projects goes on. There are already many kickstarter startup that succeed, where its good to invest.
It can be good, but regulation is a double edged sword. We first decided to do an ICO because it was cost effective and the idea was new projects could get crowdfunded easily as people would invest in the "idea". Of course many would not work out but the point of the crowdfunding would be many investors contributing very small amounts, "taking a shot". Regulation is just another word for taxes and costs. I can show you hundreds of companies that run "reverse merger" scams on listed stock exchanges. The SEC is fully aware, but as long as you pay the fees and taxes you can keep changing your symbol and keep taking money. There is no investor protection whatsoever. it is a tax game. Now the ICO market is no different than equities. Where is the benefit?