Working in this domain since 2014, this is a step in the right direction! The best thing is that this bill targets all IoT systems, and not only consumer IoT.
However, it takes a very customer-centric approach, expecting that IoT manufacturers will follow NIST standards to get access to a huge pile of customers.
The NIST standards are quite good (NIST IR 8228, 8259 and its annexes): they use recognized principles for IoT security: a risk-based approach, secure-by-design principles, a baseline completed by sectorial requirements. But they are difficult to apprehend and I doubt a lot will change since many manufacturers don't sell in the US or only to individual consumers.
Other regulations follow a different approach: they target IoT manufacturers by making security requirements a condition to market access. These regulations usually have presecriptive requirements (no default password and secure update) or mandate the implementation of a standard (usually ETSI EN 303 645, a good complement to NIST standards). This is what Brazil, the UK, California and Oregon are doing.
Another trend comes from labels and certifications to inform customers on what they buy. Most approaches are based on ETSI EN 303 645 (again), probably to avoid seeing "yet another standard". This can be mandatory (UK) or voluntary (EU, Finland, Singapore, Australia).
In conclusion, IoT cyber security regulations are now a reality. I've always been in favor of self-regulation but it doesn't work. Just look at Verkada last week, they had a superadmin password giving access to all their customers' CCTV feeds. Let's hope things change for real this time.
If you are interested by this topic, I published a panorama of IoT cyber security regulations on GitHub: https://github.com/cetome/pano....