Among most people that nuance will be lost. What they’ll hear is models are dangerous, so they should be controlled/regulated, by those who know best, the incumbents.
Maybe open weights models get banned, but the between-the-lines good news about that is that they'll still be available to those who know, which also means that bad banning can be overturned if and when 'those in power' are a different group.
Additionally, it might just mean that the US falls behind, bit I doubt those that are at risk of 'falling behind' would actually pay heed to a ban on the open weights models (privately at least).