I generally prefer a lighter regulatory touch... however the huge number of fraudulent ICO's really illustrates why there is such a perceived need for regulations.
"Obviously the people need protected from investment schemes - look at what they invested in when they didn't have it!"

Yet there is a narrow focus to such thinking. All the supposed sophistication and accreditation didn't stop billions of dollars from being invested with Bernie Madoff. When the returns look good, people have a tendency to look the other way - no matter how much accreditation and sophistication they have.
In fact, the expectation of tacit government approval leads to a lot of intellectual laziness - "I don't need to do as much diligence because the government actively stops fraudulent schemes."