The point of this is to allow the government to pay back crypto that they can already seize.

I don't think it will actually help, because the government won't follow through.

But they could already seize your crypto from exchanges.

Now they can also send seized crypto back to its rightful owners.

The point of this is to "help" prevent exchanges from stealing from their customers/prevent hackers stealing from exchanges.

If it does wake people up so that they take their crypto off the exchanges themselves ahead of time that will be the biggest benefit.