What do you think US bureaucrats do other than regulate? The federal government drives people crazy. Have you ever tried to file taxes in the USA? It’s so complex you end up having to pay for the privilege.

The innovation gap is real but it’s not just to do with regulation. It’s a lot to do with concentrated capital networks (eg Silicon Valley). And sure, the tech giants are in the USA but it’s not like there’s no innovation in the EU. Spotify in Sweden. Challenger banks in the U.K. (included as Monzo predates Brexit). And plenty of innovation - they just get bought by US companies. Which is a financial market weakness, not a regulatory one.