From beginning of the article:

As with securities lending, short sales, provided they are conducted in compliance with applicable rules, can play a valuable price discovery role in our capital markets.

That said, they can sometimes contribute to, or even cause, precipitous price declines, facilitate market manipulation, and generate market uncertainty and volatility”, said Commissioner Lizarraga.

I don't think the rules are perfect, but it is a start. I am happy to see some progress in this area.

Anything that can be done to ensure compliance with the rules seems like a great thing to me. If that causes stress on the markets, then the markets were not fair to begin with.