If this is their ploy it's a bad one. The US is currently a convenient place to base tech companies, but if the law makes it too difficult then people will just start tech companies outside of the US and block US users if necessary.
Repealing 230 would have a similar effect, but with the focus on protecting people from corporate censorship. If this means Facebook/Twitter/TikTok et. al. become unprofitable, I'd consider that a double win.