Regulators want to make sure they protect investors from scams, while at the same time allowing the industry to develop and deploy the new technology in interesting ways. Overregulation could move the action elsewhere, which is what happened in China.
Its too early to tell who's doing the best job of setting the rules. Nations are taking various tasks.
What do you think?
The first goal of governments who trying to regulate crypto is profiting. An additional taxation and crypto user's deanonymization will constitute a serious blow to the idea of global decentrilized crypto. All this cryptocurrency's law regulations are an emerging discipline and should be approached with care.