A lot of harmful AI regulations have been proposed. Some seem designed to benefit well-heeled interest groups at the expense of society, while others seem to be pure populism. Watermarks are an especially worrying example of the latter.
Whether “regulation” in the abstract is harmful is not a sensible question to me, which is probably because my ideological outlook is different to most people here, which is probably because my cultural background is different. I’ll resist the urge to give a long, rambling explanation.