I think it's a little bit like asking whether programmers are the cause of bugs, or the solution. The problem is that the regulations are being created by people who are either incompetent, corrupt, or possibly both. Unfortunately people in government don't really have the right set of incentives, and so it's not surprising that the results are awful. Imagine if software were written in the same way that laws are written :(
It's easy to get into murky arguments about this, but I think it's safe to say that regulation can, and often does, prevent market competition from solving problems like this.
I think it's a little bit like asking whether programmers are the cause of bugs, or the solution. The problem is that the regulations are being created by people who are either incompetent, corrupt, or possibly both. Unfortunately people in government don't really have the right set of incentives, and so it's not surprising that the results are awful. Imagine if software were written in the same way that laws are written :(