It seems to me that regulation and crypto industry is impossible. I am fully confident that the government will not be able to affect the quality of some projects.
They will surely try but it is going to be a real challenge for them to try to regulate something that was specifically designed so they could not regulate it and when you add that many of the people that are in cryptocurrencies are doing it so they can be free of government control then you have a series of problems that will be very difficult to overcome for any government around the world.