Don't get me wrong. I think it's possible, but it would be so costly that you would need to close nearly every software business in the US.

Safety critical software costs about 100x as much money/time to develop as compared to non safety critical software. "Algorithms" are everywhere, so certification costs would make any software shop as costly as automotive and aerospace. That's just completely misguided. Countries without such restrictions would take over the global software market quickly.