A solution does exist? - micro democracy, delegate more decision making authority to the smallest geographic unit possible. Then people are voting for someone from their neighborhood.
This comes with a lot of trade-offs. The complexity of regulation explodes, because everything takes more hops and there's more context switching.
Even with just 50 states in the US currently, the complexity is very high. Operating in all 50 states or just a few is very difficult and costs a lot of money. Usually what happens is the "lowest common denominator" solution: whereby companies just follow the superset of laws that comply with the most stringent regions.
That's why California law is pretty much the most important state law. California has the biggest economy, and a lot of companies are headquartered there. In addition, their laws tends to be more restrictive for companies. So even if you're in Texas, there's a good chance you're just controlled by California law.
Even with just 50 states in the US currently, the complexity is very high. Operating in all 50 states or just a few is very difficult and costs a lot of money. Usually what happens is the "lowest common denominator" solution: whereby companies just follow the superset of laws that comply with the most stringent regions.
That's why California law is pretty much the most important state law. California has the biggest economy, and a lot of companies are headquartered there. In addition, their laws tends to be more restrictive for companies. So even if you're in Texas, there's a good chance you're just controlled by California law.