I think government regulations is good for cryptocurrency. It only implies that if there is regulations, there is recognition on the part of the government.
In that sense, crypto enthusiasts feel more secured and confident with their investment.
I don't know, if the regulation benefits cryptocurrency, or supports it, then it will be very good, because that might be the form that the government has accepted. but, if not, then of course that is something that is bad and can have an effect on cryptocurrency.