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I think if this happens, decentralized social networks will really take off. The "small sites" you refer to , which I'm assuming are typical forum type sites,

• manfredo 7y ago
  Small sites would be absolutely devastated because the threat of being held liable for user comments will be way too large of a risk. Small networks don't have the resources to pre-moderate comments or build sophisticated automated systems of identifying high risk content. How many people would host their own site when the consequences of user-submitted illegal content being posted could mean millions in liability? Very few, if any. The result is that large players are the only ones that can survive in a market where companies are held liable for user submitted content. Maybe if by "small" you're talking about dozens of people. But I fail to see how comparably small sites like Hacker News could continue to exist without section 230 protections. It'd probably take fundamental changes like charging users a subscription in order to pay for enough moderators to pre-moderate comments and submissions and I am unsure if that's even a viable approach.