The observation isn't just my observation. Libertarians have long pointed out that regulations don't just directly affect the regulated. Regulations end up distorting the entire market. This is why regulations end up having undesired consequences. it also explains why regulators tend to develop a totalitarian mindset.

The regulators regulate one group. This creates undesired consequences. The regulators then regulate another group causing more undesired consequences. The regulators then conclude that they need to regulate everything.

The US was formed around the idea that the states would due most of the governing. Businesses flee regulated states for unregulated ones. In response the regulators seek regulation at a national level.

Today one sees a bigger and bigger push for regulation at an international level.

BTW: You will find this effect in every industry. My observation isn't really that astute. I am just taking a general principle to a specific market.