They're saying that companies are much more likely to be consistently ethical if they're forced to by the government, assuming the regulations that the government makes are themselves ethical. Even if you accept that Sam Altman, or any CEO, has the people's best interests at heart, it doesn't matter, the people shouldn't have depend on the CEOs of a powerful companies being a nice people to ensure they're not harmed. They're not saying it should be illegal to be an asshole, they're saying it should be illegal to run your company unethically.