Earlier quoted context omitted.
Identity theft is a crime. If a platform facilitates this, it should be liable.
Identity theft is a crime when used to commit fraud. Just claiming to be someone but not otherwise defrauding anyone is fine.
The news is that they're effectively removing what verification there was, and the checkmark becomes basically a TF2 hat that means nothing. You'll be able to change your display name to "Elon Musk" and buy a checkmark.