How Will the US Bitcoin Reserve Work, Exactly?: QuickTake

With a March 6 executive order, President Donald Trump created a strategic Bitcoin reserve, effectively entrenching Bitcoin’s legitimacy as a mainstream financial instrument. Now the world’s biggest cryptocurrency will rank among the assets held in reserve by the US government, along with gold, oil and cheese.

With the same executive order, Trump also created a government stockpile for all other digital coins the government holds.

The long-awaited moves didn’t result in investor euphoria, however: the price of Bitcoin and most other tokens dropped sharply after the executive order. The fall in value reflected investors’ uncertainty about how ...