The law will affect exchanges and non-custodial wallets, such as metamask, ledger and trezor,
In other words they can only target anything that is centralized.
- MetaMask: is a centralized non-custodial wallet created and controlled by a centralized company in United States called ConsenSys. It also relies on their centralized servers. It is controlled by the company hence can be forced to obey what the authoritarian government demands.
- Ledger, Trezor and all hardware wallet: are centralized non-custodial wallets that are issued by centralized companies and those companies can be forced to even introduce backdoors into their product.
Anything decentralized like bitcoin core, electrum, etc. is not affected.
This was always coming, and it’s going to happen everywhere
This kind of aggressive invasion of privacy and human rights has always been only happening in countries with authoritarian regimes not everywhere.