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The dystopian part is being required by law to use a specific form of authentication tied to your real identity by the government in order to access the internet.
So to play devils advocate. Chase bank doesnt require FIDO2 authentication and allows sms or email mfa.
This allows people to easily hack your banking accounts and steal your cash. How would you secure that authentication process or what reason do banks have to increase their website security to protect your financial accounts?
Regulation is not dystopian. This law wouldn't be dystopian. Having bots pose as humans to influence opinion is dystopian imo.