I suspect that this proposal will not pass as written but even by proposing, it will bring much more awareness to a system built of manipulation and control, versus truth and freedom. 
The US will not beat China by being more authoritarian than China, so I’m betting that smarter heads will prevail, but even in the event they don’t - it would only accelerate the development towards countries looking to take advantage of the US increasingly turning away from individual rights and freedoms and a free market. 
But as you say @LynAlden - We are in the “then they fight you” stage. 

 We’re just going to have to get more sly and more roundabout. 

 🎯 

 As far as I understand it is very broad (I listened Rabbit Hole Recap) and you can be criminal just because your Transaction has more than one inputs. It is important because of privacy but also because mixing transaction from different people could be a way to default privacy while reducing the base chain transaction fees.