Positive when we're talking about crypto going mainstream and increase mass adoption.
Correct.
Negative when we're talking about privacy since regulators will tighten up anti-money laundering policies on all exchanges and custodial services.
Wrong, this is also a positive.
We tend to see regulation as something bad but do note that the reason of why bitcoin and crypto have a negative image in the public mind is because of the money laundering that happens with the lack of regulation. If they would be regulated, more governments would be willing to allow trading freely and removing the "grey area" concept that has been plaguing this sector.
Who needs to be put behind the bars are the ones who manipulate and take advantage of the pseudo-anonymity provided by crypto. Those are the criminals and they are always going to vote for non-regulation of crypto because it hurts their business. Try to understand this.
Retail investors who pay their taxes and abide by laws will be willing to do trading but currently facing apprehension regarding government stance - they would be more interested in crypto if it would become regulated.