I think regulation of ICO would be a good thing as long as it is not pushed too far. Because there are so many ICOs which are scam and don't get punished for there crimes, government should track down these people and pt them in jail.
But the other thing is that with more regulations governments will require the identity of the investors meaning KYC would become mandatory which is a bad thing because a majority of us wants to stay anonymous and don't want to pay taxes or anything on their earnings.