When they say: Please, for the love of God, regulate us. Give us licences, audits, and bans before our digital God destroys us all.
Here is what is actually being requested. Three things, in order.
A regulatory body that they control, to prevent competition from catching up. Written with their people, staffed by their alumni, and calibrated to what they can already afford. Compliance is a fixed cost, which means it is trivial for the incumbent and fatal for the challenger. Not technology, but paperwork becomes their moat.
Immunity from liability. This is the one nobody talks about and it is the most valuable of the three. Today, if your model causes harm, it is your fault. Once licensed, audited, and approved, it is the regulator’s fault – you followed the rules. The licence converts responsibility into a receipt.
Too big to fail status, which means taxpayer funded bailouts in case of problems. Declare it critical infrastructure and the state now has an interest in your survival. Which means, when something goes wrong, the losses are public and the gains stay private. We have watched this film. Banking, 2008, same argument, same vocabulary.
Note the pattern: every one of the three transfers something from them to the public – risk, competition, cost – while the language is entirely about protecting the public from them.
The sincerity of the fear is beside the point. Sincere people can still ask for exactly what an insincere person would ask for, and the request should be judged by what it does rather than by what motivates it.
The alternative is unglamorous and works: competition, adversarial testing between rivals who want to find each other’s flaws, and full liability after real harm. Nobody gets a licence. Nobody gets immunity. Nobody gets a bailout. You build, and you answer for what you built.
That is the arrangement that made the West rich. It has never needed anyone’s permission to work.
https://x.com/Kristof_Poland/status/2100607547900039483?s=20