I don’t think that reasoning is necessarily unsound. For there to be regulatory capture, there needs to be regulation. The legislation proposed could be to remove or minimize that regulation, and thus limit the ”hooks” whereby to capture it with. Replacing ”governmental interference” with ”less governmental interference”, not ”different governmental interference”.

I don’t take such a libertarian view myself, by the way. Just pointing out that I don’t think you can pick apart the argument of the person you replied to in that way.