This regulation will force many technology companies in security field out of US - only ones dealing with the gov directly would benefit from remaining in the country.
If US gov continues creating legislation out of fear of technology, I foresee exodus of technology companies in any field from the US, because otherwise they would be out competed on global stage due to regulations. Also, it is quite possible they will be no longer willing to sell technology to US consumers, either directly due to regulations or for lack of demand (indirectly caused by regulations) - and US consumers will not even know what they missed.
For example, see how long it took US cell networks to "invent" SIM cards which could be easily swapped between phones (thanks to telecom regulations), how long it took to "invent" chip & pin (thanks to banking regulations) etc.
It's not a good news for Americans, but you get what you voted for (sorry, couldn't resist sarcasm here). At least Amish will not complain.