Reasonable regulation is good for the crypto world overall only because it will keep scams from hurting the overall market. If people are so dumb to invest their money without due diligence in ways that would be disastrous for them overall, they are to blame. Of course the scammers should be held liable for any criminal activity. But creating a ton of red tape will stifle innovation and can potentially make it impossible for all but the big guys to play, which will always encourage centralization.