How else would you describe a response that doesn't even take into account the possibility that one could avoid government regulation when there's apparently no solid proof that regulation is better than the lack of regulation? It sounds like a knee-jerk response to me.
Why don't you default to "We shouldn't spend a bunch of extra money on regulation when we don't have any reason to believe regulation will help, or even won't hurt!" instead? If you have some meaningful, reasonable explanation for that choice, I guess I might have been mistaken about the idea that it's a knee-jerk response, but you haven't shared any reasons so far, and there aren't any obvious explanations for why wasting resources on regulation that might just make things worse is better than avoiding that regulation.
You may not like the values the law represents, but you can't attack its implementation as subjective.