The problem with regulation is that it won't (can't) solve the problem. You'd have to go totally draconian to stop law breaking people within the US from doing matrix multiplies, and then you'd have to disconnect the US internet from all the countries who won't give a crap about US regulation.

So yeah, US regulation is ONLY about capturing US consumers. This isn't food or airplanes.

Further, its about ensuring the open weights models never catchup/exist so these guys dont turn into a hardware reit like they should and they can keep their insane margins