https://www.compliancegate.com/plastic-kitchen-products-regu...
The issue is decentralization != no regulation, and lots of crypto folks seem to think that they should build systems that cannot be regulated and expect that to be compatible with modern society.
Some think that all rules you ever need can be encoded in the network, removing the need for "external" regulation. Of course that's not entirely realistic.
Cash is similarly decentralized in that its definition and creation is centrally regulated, but nobody says (or even can say) how and when you can use it. Cash transactions between people happen without any central authority. There's not even a central authority definiting the price/value of goods! You can just agree on a number with some rando, exchange cash for things/services, and nobody will ever know it even happened, let alone be able to tell you how and when to do it.