This is only obviously stupid because we understand the industry and know enough about the technology to realize how pointless and potentially harmful this could be. Now, think about all the things you know nothing about that are in new legislation every day.
This just underscores the fact that legislators constantly create laws on things they know nothing about. Processes need to slow down and build in sanity checks so that the public and industry experts have a chance to weigh in on issues. The recent trends have been going the other direction with lawmakers pushing through major bills without even reading them. This is dangerous for many reasons that should be obvious.