Good: scam or dishonest projects should best collapse and disappear from the cryptographic map as soon as possible, the market would be cleaner without such projects and the crash of FTX should crash sooner because the longer it waits, the more severe the impact will be.
Bad: as you mentioned, the government will interfere and will stifle our development and our freedom. Look at the stock market, they hold them back with strict regulations and almost no privacy for investors.