If you have been reading the news lately, you would know the story about OceanGate submarine that failed and killed all people onboard. The cause of this tragic incident is that the creator of the submarine chose to ignore regulations. He believed that they are only in place to stifle innovation and that he knows better than the others and can't be wrong.
OceanGate CEO Stockton Rush said in 2021 he knew he'd 'broken some rules' by making the Titanic submersible out of carbon fiber and not pure metal: 'You're remembered for the rules you break'lThis should be a cautionary tale to people who dream about society without government and its regulations. Imagine if someone makes an "experimental and innovative" nuclear reactor that explodes and gives radiation sickness + cancer to hundreds of thousands. Or someone makes an "experimental and innovative" dam that collapses and floods houses. Invisible hand of the market won't be able to undo the damage or prevent it in the future from repeating again.
I think obviously some of the government regulations are very important in some aspects if you see. They are not made to stop you but obviously to safeguard you. Even in cryptos etc they are made for this purpose only, because we don't have the solution to the problems that might come many governments think an outright ban could help but it doesn't eventually when our technology will grow, governments might be able to find actual solutions to these issues and then allow Cryptos in a regulated environment.