I believe regulation is another stage of a booming cryptocurrency. Imagine a country where we can freely trade cryptocurrency away from those FUD of crypto being banned. Aside from that huge audience of merchant will definitely flocks in because cryptocurrency is now considered legal trade. So from my point of view, regulation is another level of acceptance and support of the government.
I definitely agree we may have different opinions about that matter but this is what we need to accept for Bitcoin and other cryptocurrencies to grow. We created a new market outside from the stock market which made other people interested in doing an investment of their own. The government is simply asking us to help each other as we will both benefit from it.
The opposing argument suggests that since computers always require some form of energy to operate, crypto mines shouldnt be taxed at all.
I don't think this is an argument at all. Of course everything requires cost in order for us to earn. Cryptocurrency Mining should be considered as income tax nonetheless as this is what they are earning from. Just think of it as a real mining company where they dig gold, nickel, or other precious earth metals as they are still paying their taxes.