From what I've seen it increases the treatment of custodial services as financial providers. It doesn't expand the definition of financial providers, and there isn't any new regulation on the self-custody wallets themselves. I think it creates a KYC'd classification of "verified" self-custody wallets, which suggests that there are powerful people who want to use Bitcoin for high value transactions without being asked questions, which sounds like Bitcoin winning to me. Note that they say "verified" and not "identified".