I have only one answer for present moment - we need no regulation now. Because market is small, and bitcoin using not a lot of people. It must be regulated only by crypto community.
The community cannot effectively fight cryptocurrency fraud, especially in ICO. Scammers will simply ignore any social rules. I'm not talking about hacking. Only state bodies can effectively deal with these problems. Therefore, we need the legalization of cryptocurrency if we are going to feel more secure with cryptocurrency, and not at our own risk.