Less regulation is better than more, as far as efficient market theory operates.
It was a given there would be regulatory overreach. It's good to see some retrenchment on the early posturing.
As for illigal short selling actions:
Penalties for miscreants are increasing in frequency, if not overall dollar amounts (I haven't seen any aggregate date on fines and penalties lately). It would be helpful to see more swift action in these cases.
But again, we are dealing with an outmanned and underfunded agency that points their nose at the strongest smell.
On The Internet, Everybody Knows You're A Cat