I’m so confused by the focus on “all lawful use.” Yea of course a contract without terms of use implicitly is restricted by laws. But contracts with terms of use are incredibly common, if not almost every single contract ever signed.
The administration objected to those terms of use. Anthropic refused to compromise on them. OpenAI agreed to permit "all lawful use" but claims to have insisted on what at first glance appears to be terms of use in their contract. But in reality those terms permit all lawful use and thus are a noop.