Whenever government proposes banning a technology, one must ask: who benefits? The LLMs, even in their current state of infancy, are powerful tools. Restricting access to those tools keeps power in the hands of wealthy corporations and the government itself. That's the power aspect.
The money aspect is even simpler: Don't doubt that some of those wealthy corporations are making donations to certain officials, in order to gain support for actions like this. Almost no one leaves the Congress (or almost any parliamentary body in any country) as less than a multi-millionaire. Funny, how that works...