I think the high upfront capital required to start out in the industry is a much much bigger hurdle than the regulation.

You see the same problem in IT with hardware startups vs purely software ones. The moment you need to own something more than 1s and 0s, the risk grows exponentially.

Reducing regulation doesn’t solve that problem.

And that’s without even considering all the shady tactics that the incumbents can do to drive new ventures out of business.