I understand that anyone can develop a coin today and just rug pull people whenever they want, but that is not the only reason that makes coins shit. Assuming there was a regulation, a coin can meet all the criteria of the regulation and still be shit.
There are a lot of coins that are still being traded in the market today that are absolute shit. First things first, when a coin has an unlimited supply, there's a 99% chance that coin will be shit because it will never be scarce. A coin that is never scarce will never have value because no matter how high the demand is, the supply will always be more, and after a short period, it will start depreciating in value. There are so many coins like that.
You'll see coins with so much market cap, but their prices are just a little over $1. No every
There is nothing regulation can do about a coin that is just shit.

Btw, why are people still considering altcoins are a coin you can rely on for the long term? Most of these coins have not beaten the ATH they had 2 to 4 years ago. If you must invest in altcoins, it has to be short-term. take profit whenever you can and bounce