The government mandate forcing them to restrict access of new models to American has really cut their legs under them.

This identity verification is a best effort to kinda stay afloat: they can now offer bleeding edge models to US nationals, but not to the other 95% of the world. Their influence is gonna tank quite seriously if the previous mandate is not reversed.

Realistically, their choices are to either implement this, or restrict access to new models entirely, which is a sure way to fall into complete irrelevance.