Spoiler: The plan is .. add massive regulation, but only to the US, don't affect other countries developing it in any way other than "setting a good standard that'll hopefully influence them". Seems like an airtight plan.
If the USA takes up his suggestions, it will have an incentive to work on international frameworks and treaties with competing nations to make the regulation global.
China is already considering similar controls, immediately following Fable shenanigans. You'd be surprised how easily policies can spread to different countries, being mirrored for the sake of mirroring. Anyone who can influence domestic policy can influence the course for the entire world to an extent.
Slowing down helps China catch up though. I'm also not sure that the CCP is really the most enthusiastic supporter of unlimited access to arbitrarily powerful LLMs
This is literally what happened with DMCA and digital trade agreements in the 90s/2000s. The US "suggested" other countries create their own equal laws (by threatening them with tariffs if they didn't).
The threats worked up until current Big Boss decided to tariff everyone anyway, on Liberation Day.
Not only is there now no incentive for other countries to follow suite - there is now strong incentive for other countries to distance themselves from US trade. Recent history has made that abundantly clear.
There won't be any kind of international framework, because by now countries have learned that the US' word is pretty much worthless, similar to Russia's. They now know from experience, US-ratified treaties will only be honored if they feel like it on a particular day. If it's inconvenient, it will simply be ignored.
You'd have major protests in most large economies if they deliberately put themselves under the boot again. Even in "friendly" countries the US is disliked enough to be effectively considered a hostile country. E.g. in Germany, there is large public support to finally get the US bases closed and the soldiers removed.
Lots of things changed in the last years. And international major treaties being widely ratified just because the US asks for it is no longer a thing, at all.
A country that threatens to annex parts of your territory is not a friend, full stop.
Those sticks look less effective today. The hegemony is in recession as the rest of the world smiles, pays omage to dear leader as needed, and works to decouple in the background.