They don't want to track people who will use those decentralized services. Simple as that.

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...