Positive side, government regulating bitcoin is a good sign to end any skepticism about Bitcoin not being legit and scam. Acceptance can turn other skeptical people to finally invest on digital currencies. With Bitcoin as the pioneer Cryptocurrencies and will it be regulated, other people may turn their interest also on new ICOs. Though, govt should focus monitoring the scam ICOs. USually, ponzi schemes.

One negative side, is that government should set their clear cut guidelines to monitor Bitcoin transactions. As the govt should not interfere with the anonymity of BTC transactions.