That's good, however many projects might find the government regulation too much, depending on the country.

So they could decide to stop further development, because of all the interference.

And even with regulation it doesn't mean a project will succeed, that's depending on a lot more factors of course.

Even regulation can't solve that.

And to my opinion, these regulators should respect the anonymity of blockchain more.
Privacy is a fundamental right, well not in some countries...