There's a broken syllogism here. No one said that the new paradigm only entailed government regulation. It entails thinking differently about how to regulate. The old paradigm entailed government regulation as well, just a more worse kind.
If the old paradigm DID entail regulation, by whom? And under what constitutional authority?
This has been explained to you several times, but I'll type it more slowly this time so that perhaps even you will understand. It has been regulated by the Department of Transportation since 1984. It was done because the United States signed a treaty, ratified by the Senate per the Constitution obligating us to be responsible for all launch activities originating in the United States. In order to satisfy that obligation, it was necessary to establish a regulatory authority. This was done in 1984 via the Commercial Space Transportation Launch Act.
Sorry, that's the Commercial Space Launch Act. A law pushed by Ronald Reagan, by the way.