No matter how government try to influence the market with their position, the core definition of bitcoin and her decentralization cannot be tarnished. If government try to build something by inviting a developer to draft out a unique feature that will drive users toward feeling unsafe about their investment, i think such cannot be possible because every transaction will reflect onchain which can be traced and tracked for public visibility.

Government are only be able to build centralized platform where your portfolio are controlled, minimum and maximum amount of withdrawals are imposed on your assets, kyc verifications are occurred for their own benefits and many more but at the end every waves of transaction are reflected onchain for public awareness, thats what government is not happy with, thats their point of weakness.

Institutions are only influencing the market price to favour them, but at the same time favours the holders too as well, so its win win for everybody not only big ventures.