this is actually good for bitcoin. just proves that no powerful government can touch money stored in bitcoin. Finally an alternative to digging gold bars in the woods :)
Additionally, ‘knowledge’ such as a password has been pretty consistently ruled as protected by the 5th amendment and in theory someone couldn’t be held in contempt for refusing to divulge it here in the US. However, if someone is already convicted or seizure of something is blocked by that knowledge (that may also be incriminating if someone has it?), that is less tested and probably not protected.
Even if you haven’t, it is very, very rare (and usually requires high profile political pressure) for being held over contempt to happen for very long.
I think it will be a lot less rare if digital currencies become a bigger thorn in a government's side.
Here is a story about such a case, but not crypto related - 17 years! [https://www.google.com/amp/s/abcnews.go.com/amp/2020/story%3...]
Lots of multi-sig schemes you could invent to make your funds accessible.