> Preventing space debris is not related to this topic in the least. Neither is preventing a "space arms race".
The relation is OP's complete and naive refusal to entertain the possibility and usefulness of regulating private activity in space.
> It seems to me that the best way to solve this problem is to get rid of this useless office.
> I don't think it's good discussion etiquette to link to an unreadable wall of bureaucratic text and not give any context. I.e. at least state one good reason for this regulation.
See: it's this attitude that keeps the level of such discussions at a kindergarten level. The linked document contains text, yes. But it's perfectly readable English. The first paragraph is headlined "SUMMARY" and contains this justification for the regulation and the office implementing it:
They are intended to facilitate the development of the U.S. commercial remote sensing industry and promote the collection and widespread availability of Earth remote sensing data, while preserving essential U.S. national security interests, foreign policy and international obligations.
You can easily find a later section entitled "Purpose" that expands on it:
(1) Preserve the national security of the United States;
(2) Observe the foreign policies and international obligations of the United States;
(3) Advance and protect U.S. national security and foreign policy interests by maintaining U.S. leadership in remote sensing space activities, and by sustaining and enhancing the U.S. remote sensing industry;
(4) Promote the broad use of remote sensing data, their information products and applications;
(5) Ensure that unenhanced data collected by licensed private remote sensing space systems concerning the territory of any country are made available to the government of that country upon its request, as soon as such data are available and on reasonable commercial terms and conditions as appropriate;
(6) Ensure that remotely sensed data are widely available for civil and scientific research, particularly environmental and global change research; and
(7) Maintain a permanent comprehensive U.S. government archive of global land remote sensing data for long-term monitoring and study of the changing global environment.
Those seem to be seven good reasons. If you want to argue their merit, you should start with a good-faith effort to understand them.