This is a tactical setback that could lead to a strategic victory. The best thing that could happen on this issue is to elevate it as a First Amendment issue before the Supreme Court. En route, everyone on politics could weigh in on it. The conservatives, of course, would support the law while some of the liberals would oppose it. That would be wonderful political sport to witness, every night on TV, the craziest liberals argue for the right of scumbag imposter's to declare themselves winners of the Medal of Honor. Following that come the combat buddies, friends, and family of fallen MOH winners in rebuttal, if not those few MOH winners themselves. It would educate the MOH on just what it is all about and the military, too. When you contrast the heroes of the military to the scumbags who would publicly favor stolen valor, it would be a media slam dunk. It would make the liberals look like treasonous jackasses, even more than they are now, and fracture the left as the decent liberals scramble to distance themselves from the loony left.
Bring it on.