Last year when i saw the way and speed at which new ICO are springing up here and there, i zeroed my mind for government intervention. Let face it many of all this ICO are nothing but fraud in disguise and have left many people in tears. So the government coming to regulate the market is just their own way of protecting the people from fraud. We can not our cake and expect to have it, some bad ass people took advantage of the decentralised and cloak nature of cryptocurrency to wreck havoc on their fellow human being and don't expect the government that has been looking for way and excuse to come in to hear something like this and not act.

The government regulation is here to stay and just as you opined, more strigent regulatiin is on the way.