Nefario wanted to start risky process of regulating GLBSE.
Things could've went the other way, if GLBSE had managed to get properly regulated then the shares would've skyrocketed in value.
If it was regulated banks and others would lobby hard to impose excessively strict and harsh guidelines upon it the same way they lobby to impose excessively strict and harsh guidelines on paypal that makes it a horrible service to use at times.
Banks don't approve of paypal diluting their market share and being a business competitor.
They wouldn't approve of investment competition by GLBSE & would've channeled a lot of time and energy into ruining it.
Regulation doesn't necessarily mean much considering it typically fails to detect the enrons and madoffs of the world.
Who regulates the regulators.