I would much rather have a democratically elected and constitutionally constrained government than private enterprise with limitless power. It would also be helpful if the “government is bad” people would stop electing the people who seek to sabotage the government.
When it's allegedly stored in the Secure Enclave and the data unable to leave the device, it is obviously not the same interaction. I personally would be fine with a law making that distinction with the on-device recognition as legal.