How would that work? Are you talking about some sort of government-sanctioned whitelist for coins, or an outright ban on altcoins? They both sound pretty awful, to be honest. I don't think the government enforcing monopolies on investor/consumer choices is anything to be happy about.
It's impossible to truly ban a cryptocurrency, and it would be counterproductive to fully try it, but regulators could just tell exchanges to delist some bad cryptocurrencies and especially tokens.
The whole crypto field is filled with scams and poor-quality projects, so-called "developers", who are usually anonymous, keep making promises and asking for money for years, instead of making product first and taking profits later. And smaller exchanges like YoBit and HitBTC are enabling all those scams by giving them platform.
Sure, there are examples of overregulation, but it doesn't mean that all regulation is like that.
I'd say the sector is full of scams and also dumb, failed attempts at innovation. There's even been some worthy innovations too. The thing is, this condition isn't particular to the cryptocurrency market. The OTC penny stock market has always operated the same way: Fledgling startups with little or no working business selling equity for cash. Most of those businesses will fail, just like in the ICO scene. It's a high-risk market where you should expect your investment to plummet in value a good deal of the time. What a lot of people call "scams" around here are perfectly legitimate investments in the OTC market. I certainly don't want to see regulators being any
more involved in cryptocurrency than they are in other markets.
Centrally issued tokens (securities) are also one thing, because there are existing securities laws that mandate investor protections. These laws usually don't apply to altcoins, so it would be pretty disturbing to see governments ordering exchanges to de-list them.
