Since they propose a bill for that, let’s just assume they already set all the measures to keep those billions in Bitcoin safe. They can’t just trust a 3rd party anymore. Even if it’s in an institutional wallet, we all know nothing is hack proof.
If they can keep the nuclear launch codes safe, they can definitely keep the small amount of Bitcoin that they own safe.
Well, that nuclear thing is way more complicated, so yeah, it’s not impossible for them to secure Bitcoin right. Maybe the transfer to Coinbase wallet before wasn’t really to increase its security, but more of a plan to sell it. But then the executive order was released, so they had a change of mind and now they want to keep it.