I don't believe that regulations of OTC drugs should be reduced. If anything they should be more strict. People continue to abuse OTC drugs and while that is their own choice, there is too much grey area for drug companies to be sued for misuse and thus the regulations must remain strict.
One only needs so many over-the-counter drugs. Over-the-counter drugs are used to create unsafe, illegal drugs. Lowering the regulations would make it more simple for the creators of potentially lethal, unsafe, illegal drugs to get a hold of the materials they need in order to make them. So no, the regulations should not be reduced.