The way these ICOs are pulling exit scams, some kind of regulatory over watch wouldn't hurt the cryptocurrency market. There needs to be some repercussions for fraud and without the SEC or any government body getting involved there really isn't much that can be done to these fraudsters.
Something really has to be done about these scams and if a higher authority has to step in, I would be in favor of it. Many have wanted the government to stay away from getting involved with crypto matters because they wouldn't want their hands messing but if it's a way to avoid scams from getting worse then it should also be favorable for crypto users alike. I'd rather for the government to be involved in order to have some protection and security from the fraudsters since nothing much can be done to bring justice.