What does NASA have to do with it? NASA is not involved in launch regulation.
No, it's not, but it is government meddling in something that it doesn't belong, and bad results coming from it.
The entire point of SpaceShipOne was to show that private industry, without government interference, could achieve space flight relatively cheaply and efficiently.
But Congress, God forbid, can't let anyone know that people can be successful without the government, has to come in and regulate something that it has absolutely NO business regulating. Congress looks at all of this as a turf war. They don't want people undermining the government, so they regulate it. Then they can get on tv in their re-election campaigns and spew a bunch of crap about how they are protecting the people from those evil corporations that want nothing more than to put paying customers on death traps and launch them into outerspace simply to blow them up into a neat and spectacular fireball. Because, after all, it's so good for business to kill your customers.