Very interesting that some US politicians are starting to understand Web 3.
What is of course unsaid is that a network where the users are the true owners and have control (like Hive) has far more legitimacy than any government. And when there is choice of networks then legitimacy increases further to the point where traditional representative democracies are by comparison terms little better than a protection racket.
As Elon Musk just said government is just the largest corporation with a monopoly on violence.
But actually most of government's power comes from its monopoly over money. Governments love issuing fines. But fines mean nothing if a person can just ignore them because the government doesn't control money anymore.
If violence actually has to be used to force large numbers of people to do things they don't want to do then things break down very quickly.