Well, we've seen what happened without the red tape, when people were free to do whatever the fuck they wanted, and the results often aren't pretty. Sometimes, they were deadly, and occasionally we are reminded of why it might not be a good idea to just let the "free market" do what it wants [1].
Red tape doesn't just appear out of thin air, it appears when politicians are so pissed off about the "free market" that they actually find it worthwhile to do their goddamn jobs for once.
[1] https://en.wikipedia.org/wiki/East_Palestine,_Ohio,_train_de...