It would increase the flow of institutional capital into crypto markets. It would also strengthen corporate governance in crypto companies. Crypto exchanges would be legitimate entities and be subject to the same rights and benefits as other legal institutions. In theory, crypto consumers should feel more secure knowing their interests are protected by regulators.
Plus, crypto consumers would experience more transaction freedom if regulations were put into place. Currently, many exchanges put limits on the amount of crypto that can be transferred to fiat money in unverified customer accounts. If all crypto exchanges were regulated, these types of hinderances to consumers would not exist.