I don't understand why people have to otherize each other. No, again opposition to regulations has nothing to do with some ambiguous opposition to nanny stating
in and of itself. That is tangential to the real issue. Before getting to that, let's take a really quick digression.
Tax payer funded systems are one of the most controversial things we have. You'll find sharp disagreement on topics like e.g. public vs private funding for everything from education to medical and a wide array of other issues. Yet you'll find most of nobody that wants to privatize e.g. the fire department. This is because most of everybody would agree that the fire department does a good job, does it efficiently, and does it cheaply.
The point of this is that if there were a regulatory framework that was unambiguously and intrinsically superior to any alternative you'd find next to no opposition to it. Everybody wants the same thing in the end -- we just disagree on what's more likely to get you there. In many ways, I think lemonade stands are just a timeless and perfect example. In many states in the US today it is literally illegal, or at least unlawful, for a kid to go sell lemonade in their front yard. They can [and have] faced ticketing, confiscation, and so on. This is clearly idiotic by any standard, yet the very rules and regulations the produced this were all at some point created with good intentions. Perhaps ensuring food safety, or avoiding money laundering, or whatever other rule they happen to be breaking by selling a cup of lemonade for a quarter.
A rule that would generally stand to impose substantial penalties for writing bad code is something that would have unimaginably vast consequences at the lower level. And I think you're looking more at destroying small business in the tech industry than in suddenly having a world where all code is "good". By contrast the companies at the top can afford to greatly expand their staff and create factory lines of code review, extensive internal penetration testing, general audits, and so on. And perhaps most importantly, when they do end up violating the rule they have the resources to manage this just fine. And so it's very possible that the regulation could have an overall net positive effect there. But if it were applied to society as a whole (instead of just large companies), I think you'd be effectively killing off tech industry competition.