Regulation in the way OpenAI appears to campaign for in this response is, in my eyes, going to have a very similar trajectory to the consistent and misguided attempts at enforcing backdoors in or a complete ban of modern encryption. Attempts will be made, by agencies and companies lobbying for legislation, alleged solutions will inevitably fail, and some misguided politician is always going to be more than happy to campaign on this topic.
Large Language Models, similar to modern cryptography back in the 90s, are already running locally and anyone intending to regulate them in any way is going to find it difficult to add restrictions to something of that nature.