This is interesting because I haven't heard of this. Would it be something like your license is controlled by you? Somehow you have to keep it private though. Having someone control a position on the blockchain wouldn't seem to be that different than name and password. You can use that to prove who you are, and you can lose that just like you can lose control of your crypto wallet if you forget your password or someone guesses it or hacks your machine.
One workaround would be to store the license/registration tokens in multisig wallets, requiring both the licensee and the DMV to approve of transfers (or add a third signer and go with two of three). A fair bit more centralized than what's ideal, but the very concept of a state-issued license or registration is already implicitly centralized anyway.
