When governments make special rules or exceptions to rules for a certain class or in this case group of financial institutions, it's bogus and doomed to be ineffective.
I wouldn't mind seeing short selling banned outright across the board everywhere but this special interest stuff is bovine excrement.
I don't think we are at a place and time yet where there will be a broader push to ban shorting. This is just a case of everyone is equal but some are more equal than others.