They will make it open source, just tremendously complicated and expensive to comply with.
In general, if you see a group proposing regulations, it’s usually to cement their own positions: e.g. openai is a frontrunner in ML for the masses, but doesn’t really have a technical edge against anyone else, therefore they run to congress to “please regulate us”.
Regulatory compliance is always expensive and difficult, which means it favors people that already have money and systems running right now.
There are so many ways this can be broken in intentional or unintentional ways. It’s also a great way to detect possible e.g. government critics to shut them down (e.g. if you are Chinese and everything is uniquely tagged to you: would you write about Tiananmen square?), or to get monopolies on (dis)information.
This is not literally trying to force everyone to get a license for producing creative or factual work but it’s very close since you can easily discriminate against any creative or factual sources you find unwanted.
In short, even if this is an absolutely flawless, perfect implementation of what they want to do, it will have catastrophic consequences.
It’s $\mathbb{X}$ or unicode 𝕏 (U+1D54F)
Maybe he really likes metric spaces??