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I interpret this that it may hamper U.S. citizens just as much, if not more, than it does foreign adversaries. With the Government able to know exactly what content & information U.S. citizens are consuming, they have more influence on them within their borders. But no doubt it'll be used for foreign influence, cutting-off digital services to anyone acting/behaving 'foreign' and A.I training too.

Identification Procedures
Providers should assume all potential customers and beneficial owners are non-U.S. persons until the aforementioned identifying information is collected and assessed.
If a provider verifies that “the potential customer and all beneficial owners are U.S. persons,” the provider need not engage in further verification procedures.
At minimum, U.S. IaaS providers must gather and retain specific identifying information from potential foreign customers and foreign beneficial owners:
  • Name;
  • Address;
  • Means and source of payment;
  • Email address;
  • Telephone number; and
  • “IP address(es) used for access or administration and the date and time of each such access or administrative action.”