The US government has become one of the largest Bitcoin holders through the seizure of Bitcoins linked to illegal activities, such as those involving darknet markets and cybercrime. Since 2014, it has confiscated and auctioned significant amounts of Bitcoin, which you have already mentioned above. This huge amount of holding underscores the government's role in the cryptocurrency market and somehow reflects a broader trend of recognizing Bitcoin as a legitimate asset class. Other major governments, like Germany, China, and the UK, are also doing the same!
Not sure, if it will bring in the legitimacy of Bitcoin in US but I can only sense that the US government will keep on confiscating Bitcoins and auction them to fill their coffers!
Yeah and once those bitcoins are "auctioned" then they suddenly become clean, huh.
I wonder if that could be a loophole in chainanalysis, where people buy off auctioned bitcoins and use them to start a mixer or something like a coordinator that gives you "clean" inputs or, in this case, inputs that have bene manually whitelisted by those companies as a result of said auction.