In entirety, I do not think that regulation in the crypto market would be bad. With some regulations, we might be able to tame these scammers on these streets, and possibly get rid of them. One of the reasons why a lot of them has thrived on these streets is because there are no regulations really, and no one to ensure that projects are thoroughly screened, before introduced to the market sphere.
You're absolutely right. These are some of the benefits of enacting regulations in the crypto sphere. Lack of regulations especially ones which will put projects on check and screen them in order to check the authenticity of the project is what has led to the survival of these fraudsters in crypto who tarnish the image of this noble technology.
It's a long process and the coins that have regulation do not care for the people holding them. That is when there is pumps and dumps that will affect the coin pricing.