The politician could propose and make any regulatory limits they can on bitcoin but for innovation itself these regulations will make all cryptocoins better in finding ways it can go around those said regulations.
In the news article it said
It would allow for civil asset forfeitures of Bitcoin and other cryptocurrencies, and require users to declare cryptocurrency assets exceeding $10,000 whenever they cross the US border.But what if I have memorized my seed words of my wallet that contains 100,000 dollars in bitcoins? Those politicians need more studying to do.
Read the article in full https://cointelegraph.com/news/new-senate-bill-could-be-a-threat-to-bitcoin-innovation
