I really don't agree with this take.
Consider, for example, GDPR. Its implementation in Europe essentially forced compliance worldwide (with some smaller companies choosing to just not support users in the EU). And that's a good thing.
It's a large enough market that it can and should lead the way in sensible protections.
This isn't about luddites looking to burn witches. There are very sensible and immediate risks that we need to get ahead of. As someone in the ML/AI space I'm glad that many of the risks are coming to light. We don't need AGI for there to be serious problems with abuse of language models.