Free Men

Peter says that we should live as free men.

Live as free men, but do not use your freedom as a cover-up for evil; live as servants of God (1 Pet 2:16).

If we must submit to evil rulers, then we are not free. However, Peter is talking about voluntary submission. If we submit voluntarily, then we remain free.
Submission is not something that God requires, but something that we do voluntarily for pragmatic reasons.