Notice I said 'neighborhood business'. I feel comparing ICOs -- which usually consist of a team you've never met asking you for money for a product you've never seen -- to an established neighborhood business interested in raising capital for expansion of a proven business model is comparing apples to oranges.

Won't take long for the crooks though. Most government regulations are introduced in response to abuse and everywhere they've been rolled back, the abuses come back. No matter if in finance, in taxis (e.g. Uber's surge pricing), net neutrality, whatever.

It is also possible for regulation to be exceedingly onerous, like Prohibition.

Allow people to invest 50% of the amount they paid in taxes in a given year. It can only be done via online platform that does basic due diligence. They can only raise half of the money from a regular user, the rest has to come from a professional investor.