Why did the government hesitate to regulate digital security?

The government hesitated to regulate digital security primarily due to the fear of discouraging innovation. The tech industry thrives on a culture of rapid development and creativity, and strict regulations could stifle this growth. Policymakers recognized that heavy-handed regulations might hinder technological advancements, create barriers to entry for startups, and limit the potential for new, beneficial technologies that could enhance security. As the digital landscape evolves quickly, there was a concern that overregulating could slow down progress, ultimately affecting the competitiveness of the U.S. in the global market. Thus, the priority was often placed on fostering innovation while attempting to address security concerns in a balanced manner.