Actually, the only thing Eric Holder did was to say that local jurisdictions will no longer turn seized assets over to the federal government and then the federal government will give a portion of the value back to local jurisdictions.
What will now happen is that local jurisdictions will keep the seized assets all to themselves and will be expected to dispose (auction or sell) the assets themselves.
The reasoning: All the states now have their own forfeiture laws so states don't need the feds to help out. What exactly will change? Probably not much, but hey, it sure sounds good 'cause Obama can pretend to be doing something. Not quite as bad as how Obama has done everything in his power to slow down the pace of oil drilling (production has fallen on federal land) and then try to claim responsibility for the increase in US production because he was not able to slow down production on state and private lands.