Prices drop all the time. But no, they don't drop "automatically" as some kind of rules thing when regulations change. Prices drop when someone has extra inventory and needs to liquidate, or run a sale, or whatever.

Anthropomorphizing markets as evil cartels is 100% just as bad as the efficient market fetishization you see in libertarian circles. Markets are what markets do, and what they do is compete trying to sell you junk.