It was never really "legit" and I would claim the market now is even worse for the average investor than before. Unless you got some hookups or are able to get on a white list will a level playing field, fugget about it.
It was also never really illegal. Right now, there isnt any official statement release that is in depth for ICO yet. I would have to say that ico market isnt that easy making money now. In the past, you can see ico x10 or even x100 or x1000. This is because fund rise is less than 1mil etc. So they will have room to grow. But right now, good ico will already want to rise like 30-40mil.
Good ICO will really rise and increase it's marketcap easily, people support project that has a real future and although the market
is not yet fully regulated, we can see now that people are smarter and they will not easily fall with the scams in the community. I believe the government
has no reason to make it illegal, but they have to regulate this.