As technology gets more powerful more quickly, and the rule of law becomes more and more unable to prevent societal damage, this response becomes woefully inadequate.
For reference, look at how the societal damage of social networks has been handled: too little, too late. Same goes for RentTech.
But, I don't know the solution. The common computer has become so powerful that we cannot simply rely on inaccessible materials to prevent the danger of overly-powerful tech spreading too fast, as we do with bioweapons or traditional WMDs.