They can already seize crypto.

Now they can give it back to the rightful owners.

But I don't think they'll actually use this enough for it to really be of direct benefit to people.

If anything the main benefit is it encourages the exchanges not to steal from people

That’s not what the law says. I’ve found plenty of unclaimed funds from the state taking possession from insurance companies and other financial institutions. Izt goes into a fund, and they collect interest on it, which of course they don’t pay you. The other big problem is, they don’t notify you when they collect it, so you have to check a website and submit a claim, which requires documentation. I definitely don’t trust their ability to do this with bitcoin.