Is there any limit to what laws cities are authorized pass? I'm surprised this is even legal. If you push the reasoning further, could they also ban ATMs? Banks

Is there any limit to what laws cities are authorized pass? I'm surprised this is even legal. If you push the reasoning further, could they also ban ATMs? Banks? Uber, AirBnB, Eat24, any cashless service? To be honest, I feel like this has more to do with protecting local merchants than protecting the unbanked.