I think ironically a bill like this passing would lead to more decentralization of services -- making their goals of monitoring information even harder.
They want control over majority. Nothing else. Any legal business will be required to do what law requires them and it will affect every citizen.
I have no hope given the stupidity of my country to do something against acts like [1] personal data protection law or the decryption act. US going towards that road only means it's easier to justify our country and many others to go even higher. Soon a mandatory camera inside house for legal citizen.
1] https://carnegieindia.org/2020/03/09/what-is-in-india-s-swee...
Of course then they'll probably legally attack the open source model.
As would EU, South American and Asian businesses, they would VPN to another continent VPN to finally have nested encryption for key stakeholders communication.
The decentralized services won't be able to provide as smooth a service as the centralized ones, if for no other reason than network effects. Most people don't really care about end to end encryption. What percentage of WhatsApp users or Apple Messages users will quit the service if Facebook or Apple dropped end to end encryption. It will be pretty close to 0%. Thus what you will have is that the majority of people on the decentralized services are there because they are doing shady stuff. Thus the decentralized services will become hives of scams, dick pics, terrorists, child porn, alt right, etc. After a while, even being on one of those services will be seen as suspicious.