I’ve dealt with these regulations across several administrations. Nothing about this is novel, it is just receiving more attention than usual. Anyone could have started caring about this decades ago. You are making an argument from unfamiliarity with the regulations as practiced.
If it takes Trump to force people to educate themselves on how the US government actually works then I guess that is at least one good thing to come out of this.
I am aware that the government has always been involved in these types of issues. Even a season finale of silicon valley shows pied piper being required to navigate government oversight when it became successful and implied it was a badge of honor / success.
But you have to admit this policy seems ad hoc and creates the impression of opening a wide door for corruption.
If it takes Trump to force people to educate themselves on how the US government actually works then I guess that is at least one good thing to come out of this.