Uber Comes to South Carolina, Bringing Controversy

Uber is here in South Carolina, but state regulators aren't on board.

I'm a free-market guy, so I'm in favor of letting people engage in commerce without the state getting involved. I'm not 100% sure how the liability insurance works, but if it's a good product people will use it. If it's not, people won't use it. If you're not worried about Uber being "regulated" by the State of South Carolina, should you be free to use them? Is that a crime?

Also, how much of this controversy is simply disguised protectionism of the taxi industry?

I'm content to let the market sort it out. Anyone out there strongly for or against regulating Uber drivers?