This is extremely bullish. Coins are coming off exchanges one way or another.

Also, blockchange. Lol.
LinkI guess this will only be possible if exchanges are mandated to release such data to the authorities. How is this bullish because I'm thinking it might lead to sell offs... just my thinking though. If maybe people start withdrawing to their private wallets, them mempool will be bus again which is good for the Bitcoin network.
Well you started to answer your own question there.
The less coins on exchanges the better for several reasons. And I think this will drive people to withdraw.
That said... In made my comment that is it "bullish" with a pinch of sarcasm too since it is also draconian. I would expect Cali to liquidate the bitcoin and hold the cash. Since their government is so horrible.