The real test on this one is going to be in how well those regulations support the eventual transition from USB-C to something else.
There's inevitably going to be a use case for new connectors that have some yet-unidentified advantage over USB-C for certain devices, and there's going to be hurdles convincing regulators to grant exceptions for those devices or to adopt one of them as the new standard for everybody.
There's plenty of examples of government regulations gone wrong trying to transition from an old technology to a new one. (i.e. the REAL ID format in the US, or the switch from analog to digital broadcast TV).