A big advantage is that it would push identity control risks to the federal government, which is in a position to want to protect its citizens (it has to remain accountable to voters).

A current problem in the US is that we have three for-profit companies doing that today, whom are only really accountable to each other (sort of) and their shareholders. Their customers are each other and banks; you whose data is actually at risk are not a customer of strong value to them directly.