Then ICO will consume a lot of market capital.
Then the whole market is short of funds. If there is no law to restrict ICO, then the bear market will continue.
I don't think so. Do you know that one main reason apart from the price of Bitcoin reaching ATH that made many people join crypto was through ICOs. Many people saw crypto from bounty hunters (ICOs), YouTube videos (ICOs), meet ups (ICOs), and so much more. The ICOs introduced more capital into the market but those with bad mind who scammed people scared many others always.