Regulators regulating. Hardly news. Serious ICOs will play by the rules. If there is any hurt from this, it will be bogus projects that were not viable anyway. The shift would return focus to currencies.
Shady ICO enterprises will find other ways, no doubt. For now, ETH is down but not destroyed. I doubt it will impact Bitcoin much other than some short term volatility.
Yes, crypto went down a bit after the ICO announcement; but, notably the Dow and Nasdaq were down today, as well. So, could be all the natural disasters, news about DACA, and North Korea unrest might affect everything for a while.
One has to realize anything which negatively impacts North Korea affects all commerce on the Asian continent.
Peace.