The more they regulate it the more attention Bitcoin gets. Consider it free advertisement when people already don't trust the government. The people paying attention will likely do what is in their best interest and Bitcoin is in everybody's best interest generally speaking.
There are some situations when it is not in a person's best interest to you bitcoin. One example of this would be a title company or a law firm account that is holding funds on behalf of their clients. Both of these types of companies need to have a very clear paper trail documenting every single transaction into and out of their bank accounts.