People will be scared if they knew the truth and that not even Mankinds greatest Superpower (USA) can protect humanity if the Conglomerate of Watchers and Reptilians decide to strike.
For now they just watch and infiltrate.
People know.
And People also know that if the common man knew that neither USA or Nato or any human could save mankind if the WR Conglomerate would attack instead of analyze us, there would be chaos on the streets..
It seems that "the others" or maybe I should call them "The Phenomenon" have been here for thousands of years. Aboriginals have depicted them in caves, and they are part of their historical story telling, and cave rock paintings.
So if they were very malevolent towards humanity they could have finished us off a long time ago. Which does not mean they will never do it, but in general they seem indifferent or benevolent towards humans.
Many people still do not believe man landed on the moon. So even if the shadow state would be forced to disclose, and show bodies and craft of non human origin, quite a few Americans wouldn't believe it anyway.
And although superinteresting and fascinating, even total disclosure won't change anything in people's daily lives and their near future.
But it does depend on how far disclosure goes. If very disturbing facts get out, especially about the US government and potentially very illegal en criminal things have happened, people might get angry. And the US government will lose authority and trust.