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.
We do not need recognition from the government, that is what they want you to believe, governments are obsessed with controlling everything and everyone instead of letting people and business do their own thing as long as they are following the law, I will not be surprised that in the future you will need to get a license just to breath, I know that is an extreme example but it show to us the craziness of thinking you need government regulation to do something that you need to do.