While the motives may be noble (regulating surveillance) it might happen that models like Stable Diffusion will get caught in the regulatory crossfire to a point where using the original models becomes illegal and new models will get castrated until they are useless. Further this might make it impossible to train open source models (maybe even LoRAs) by individuals or smaller startups. Adobe and the large corporations would rule the market.
But this happens on the COMPUTER, which we don’t understand, so we have to regular the scary thing so nobody else can use it too.