I keep thinking about the Bob Dylan lyric “but to live outside the law, you must be honest”

Does it imply that the intervention of the law makes people dishonest, as everyone is trying to lie and cheat for their own gain?

Or is it about honesty in a state of nature, where the absence of any central authority makes everyone more vulnerable and willing to collaborate to survive?

This is the kind of stuff that keeps me up at night 😅