Good points.

More broadly, my greater fear is that such a “reserve” would enable and advance civil forfeiture of bitcoin at an unprecedented rate, as there would be programs and policies in place to more adequately “HODL” these assets, even when police actions may have nothing to do with bitcoin.

Civil forfeiture is a civil justice issue that hasn’t yet been addressed meaningfully in any state or federal legislation, and will only ramp up if agents and police know that Bitcoin is now fair game.

At the same time, I can absolutely see the usefulness of a government or central bank adding BTC to their portfolio, but this would only empower the federal gov’t with more power than I believe they should have (obviously spoken as a classical liberal).

I could also see KYC/AML laws being ramped up as a “responsible” measure for more inclusion of BTC into the financial system, which I believe would be harmful to many people across all layers of society.