It's true Bitcoin's being used in a different way to what Satoshi would've intended but we've still got a choice how to store cryptos. If ppl are holding the power in their hands they'll decide if they want to use exchanges. If ppl get forced by legislation it means they'll lose the choice so it's messed up. If the bill's passed it's going to put Americans off buying cryptos.
Is the bill going to apply to American citizen expats the same as it's for residents of America?
Now, how many people actually use bitcoin without a trusted third party? Do you buy, sell, or trade on a centralized exchange? Trusted third party. Do you spend your bitcoin via a third party payment processor such as BitPay or Coinbase Commerce? Trusted third party. Do you use a closed source wallet such as Trust or Coinomi? Trusted third party. Does your open source wallet sync with third party servers? Trusted third party.
This legislation will essentially make it illegal just to own your own bitcoin, but most people already use bitcoin in a way which is very different to what Satoshi intended.