ICO should be regulated and it will be so. STO should be a new type of legit ICOs with many legal requirements and maybe it will be as succeed as ICOs in 2017. I'd like this to be so, but the reality could differ a lot from what we want) In total I think that regulation is a positive thing for maturing of the crypto market.
Have you seen STO? and it seems like you have no point about what STO is. STO must registered on the regulators before you can call it a real STO. Latest STO called Bolton coin was being a scam STO. That means there was no a lot of differences in ico or STO.
Is there an official list of the government or something, where you can see all the reputable STO? This would help to know if it is a reputable STO or not. Unfortunately, i have not found such a list so far.