Advantages: Israel looks like it is taking the initiative and is out in front of the US. It could potentially persuade the Palestinians to resume peace talks to hammer out borders and security. Endorsing the 1967 borders would lock the Palestinians into a two-state solution and undercut their demands for Palestinian refugees to be allowed to return to Israel.
Disadvantages: Endorsing the 1967 borders would force Israel to withdraw from most of the West Bank, which would create a rift with the settlers and would likely mean a coalition crisis.
