Utah could demand the moon, it doesn't mean that the federal government would agree they have a right to that demand.

Utah can't tell businesses that service the country (or the world) how to do anything in this regard. You can't demand a list of the VPN exit nodes, because no VPN would ever give you that, and if they're outside of your jurisdiction, how could you possibly enforce it (assuming you got the Feds to agree with your law regulating interstate/international commerce now). You can't tell websites to only accept residential traffic, for the same reasons.

The internet sorta fucks states rights (in a good way).