Regulation will certainly come for both ICO and IEO, both are actually less regulated but ICO is worse since in IEO, we can blame the exchange if the project is scam and we can destroy their reputation, with ICO, you can't blame anyone if people behind the project are fake.
It should be borne in mind that the exchange is interested in restoring the lost funds of investors, in order to preserve its reputation, in the case of ICO no one compensates anything.