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?
It is possible for the government to coexist with cryptocurrency and not accept it as payment, which is what I think the government should do. But in fact I suspect that sooner or later the government will regulate the cryptocurrency.
The impact of government regulation is real, given that several countries have begun to restrict access to or trade in bitcoins and other cryptocurrencies.