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Stop and Seize
No, this is police theft under the guise of 'regulation'. Actual regulation would regulate when they can seize, not give carte blanche to steal any money they find and require the victim to 'prove' their money isn't suspect. That's a lack of regulation along with immunity granted for institutional theft.
Once again, (reiterating because of your repeatedly and recently displayed lack of comprehension) cops are at their discretion to seize, and they repeatedly and constantly abuse that power, meaning they need to be regulated. Government regulation can mean regulating the government...but that's a concept that escapes you.
Cops (and their 'conservative' lawyer buddies) wrote this law and lobbied to have it instated....proof that sometimes cops do make the law AND abuse it. Prison guards have the largest, best funded, biggest lobbying union in the US, they're cops, and they've written many laws.
This is regulation, in case you didn't notice that.
Cops don't make the law, they only enforce it.