The very basis of Bitcoin is to provide a peer-to-peer system where centralised system are out of reach of the government and this just proves that. If such regulations ever comes a reality, the only thing it'll probably affect are US exchanges. Does it harm Bitcoin? Definitely not. Plenty of P2P exchanges and those based overseas as well.
For those who care less about privacy, they probably won't care. For those that want to steer away from government surveillance, there are plenty of easy and accessible ways to transact.
Monero still does the job. The only reason that they want KYC is to get a hold of those juicy tax money that they can get from this bitcoin hodlers, hopefully this KYC thing is just a US jurisdiction because I do care about my privacy and I am not surrendering it anytime soon. This is a Sisyphean effort because people will always find a loophole. For those who care less about privacy, they probably won't care. For those that want to steer away from government surveillance, there are plenty of easy and accessible ways to transact.
