When you're making a seed that you want to make the best crop possible, the way to do that is to take two great lines of maize that share relatively little genetics, cross them at the last step, and enjoy the hybrid vigour that results. This is one of the most important practical advancements we have for getting good yields from crops: the yields are dramatically better for this seed then if you plant the seed kernels that are made by the hybrid. When you plant saved seed (which many poor people are forced to do through not being able to afford hybrid seeds) you get dramatically worse yields and often even doing things like using fertilizer doesn't make economic sense (https://www.hks.harvard.edu/publications/low-quality-low-ret... is frequently cited.)

However, to the naked eye, there's basically no distinction between a hybrid seed and stored seed. A lot of seed companies sell seeds that are coated to help protect the seeds from pests/blights, but seed counterfitters have learned how to copy this. To distinguish them, you either need to run genetic testing or plant them and wait a season. If you get scammed, the result can be devestating for a smallholder farmer's family.

I don't necessarily think community seed banks should be banned, but I think it's important context to know. There are people for whom they really need any seed, crops which are not served commercially well, and a whole bunch of other use cases I immediately understand for a community seed bank. But seed counterfitting is a real problem that is hurting some of the world's poorest people. (I'll also just say I'm not up to date on this law, the court case, or how it's been applied in the country.)

Disclaimer: I'm one of the founders of Apollo Agriculture and still serve on the board, which operates in Kenya and a few other countries trying to help smallholders get access to better agtech (which includes hybrid seeds and fertilizer and other high roi agricultural tools.)