I think it depends on the kind of legislation.

Let's take the Winkelvoss SEC ruling: I believe that had the opposite effect, long-term, driving more traffic to BTC and to other currencies because they would continue to be out of the purview of the US government and large investors.

So that was worth celebrating, to me, even though the market "tanked" on the immediate news. (I actually bought BTC the day before at 1300; it dropped to 900. As we know, it came back.)

I think Japan's case is likely one where the government is actually committed to making this "stuff" easier and more consumer-friendly.

But yeah, you could argue both sides of this equation. Good debate.