I think this is a good development. These are measureable characteristics of your self. You should be able to take you own data and run it through any analysis you want to. Yes, people are going to do stupid things with this information, but they now have the opportunity to better understand it's merits, and well-informed choices and the services that enable them, will arise.
I honestly prefer this aspect, of a formal regulation agency approving tests that have decent support for them. You can already download your SNP data from 23andme and run it through the genetic gauntlet with other services, but this adds convenience and separates the well-supported from the less-well-supported associations out there.
FWIW, from 23andme's privacy statement Definitely something to keep an eye on in the future (though companies can already get your genetic info through the incentive of healthcare discounts iirc.We will not sell, lease, or rent your individual-level information (i.e., information about a single individual's genotypes, diseases or other traits/characteristics) to any third-party or to a third-party for research purposes without your explicit consent.
I'm aware. Thing is, privacy statements can change whenever, for whatever reason, with no impact to the issuer... and it's not like concerns haven't been raised before.