I'd do what we do with every advancement that challenges are existing paradigms: study it, debate it, and seek out creative and equitable ways to deter the negative externalities. That may involve banning, restricting or regulating services.
> What do you do when the information cannot be removed, and the service is critical infrastructure? What happens when the content is in a decentralized internet that everyone uses, and that everyone receives automatically?
Even in this scenario, there is still going to be a common denominator that can be regulated to control illegal content (ISPs for example).