I personally believe that favorable crypto regulation will do good to the market most certainly. Scammers are present even in highly regulated markets so it is impossible to get rid of them. However, with proper regulation and legal framework around it, we will be able to reduce the number of scams for sure. But the use of regulation is not only to stop scammers. There are huge benefits for crypto market if we regulate it,
1. Legal merchants will be interested in accepting bitcoin as a payment method
2. People will be able to promote bitcoin openly to the mass
3. It will pave ways towards innovation
4. Service class people will be interested in investing if a tax framework is provided
5. Banks will stop spreading fake news about cryptocurrency
6. It's legal
Now along with regulation, if LN is adopted by mass it would definitely give Visa and Mastercard a tough competition.