Are you kidding me? I work for a company that is betting it's future on IoT in the manufacturing and heavy equipment area. I promise you, it's the evil 'ole "market" that is causing us to focus a HUGE portion of our resources on security. How do you figure it isn't in every IoT makers best interest to deliver secure products? They may be failing right now but those that do it right will win in the market. This isn't 2002 when security was an afterthought. Even tech novices are aware of security issues these days and demand it from the companies that supply them.
Show me one time where the government has gotten something like this right! They can't even handle their own security and you want them crafting regulation to manage the security of everyone else? The mind boggles.