To which I have mixed feelings of, because the community is giving up some control of the cryptospace and offering it willingly to the government. We already know how corrupt governments can be.
People aren't willingly giving anything to the government. Whether we want it or not, governments will regulate each and every aspect of this market, and we can only look at it and adapt to the situation.
You can't expect the government to just let things as they are. They see a new opportunity of extortion, and making money. In other words, them regulating ICOs is just the next step but definitely not the last.
Good thing is that this will result in more decentralized platforms to emerge where people themselves or businesses can host their ICOs on their terms. It's the perfect form of freedom.
Governmental actions result in opposite freedom actions, which is great!