Depends in the laws in question and whether it really - needed - to do something around said laws..
As I remember, in Germany, for example, there are laws that directly state that what was seized should be converted to fiat eventually, and it was done with BTCs their governement seized, even though it would be better for it to be otherwise in the long run.
United States Treasury Secretary Scott Bessent made it clear that the US will not be buying more Bitcoin for its reserve. So the country will be depending on more seizures. This is a strange move since these Bitcoins have always been auctioned. I think the US law gives those in power to do whatever they want with seized assets.