but why isn't it a regulation or requirements issue?
It's America. They don't do regulations there.
The more serious answer is that this political movement is leading to more strict regulation being enacted, it just wasn't in place because of reason #1 and the problems being much less severe.
Additionally, the tech industry is notoriously hostile to any kind of regulation. Especially now with AI. Just look at how many people in this thread will insist that it's "Chinese Propaganda", despite clear evidence that this is just a response to the actual problems datacenters cause. One news crew interviewing people with jet turbine noise will do more than a million of Beijing's finest trolls.