Hedge funds with assets over $150 million must now register with the Securities and Exchange Commission.
Hedge funds are actually a stabilizing factor in market trading, but a mostly inept media never gets this point across. Thus, politicians are able to pin blame for market problems on the hedgers.
Besides, the SEC has has had a rather poor record in checking out fraud in the past. They overlooked the Bernard Madoff fraud scandal until the damage was done.
Hedge funds tend to work off the extremes of the market. This keeps prices in line. Dodd-Frank however, did nothing but exaggerate the too-big-to-fail problem.
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