Riot Platforms’ VP of Research, Pierre Rochard, yesterday testified before the Texas Senate Committee on Business and Commerce in support of Senate Bill 21, which would establish a state Bitcoin reserve.
His testimony on Feb. 18 detailed the proposal’s role in strengthening state finances amid economic uncertainty and emphasized Bitcoin’s verifiable ledger and capped supply as key attributes that set it apart from other digital assets.
Rochard, who highlighted how he has written extensively on Bitcoin and contributed to open-source projects since his graduate studies at the University of Texas at Austin in 2012, explained that a state reserve would serve as a hedge against future downturns.
Rochard noted that Bitcoin’s open-source code and independently verifiable monetary policy allow for complete audibility, contrasting its issuance process—relying on competitive public mining—with the discretionary issuance models of other cryptocurrencies like “ETH or XRP.”
He also explained self-custody and the power of multi-sig wallets in decentralizing and democratizing wealth storage using Bitcoin.
In his remarks, he emphasized that Bitcoin’s finite supply—fewer than 21 million coins will ever be issued—and investors’ tendency to hold their coins long-term contribute to its potential as a non-dilutive asset for public balance sheets.
Texas Bitcoin reserve legislation
The proposed legislation eliminates the previous $500 million annual cap on Bitcoin acquisitions, thereby granting state officials greater flexibility to adjust investment levels in response to market conditions. SB 21 also permits investments in other digital assets if they maintain a 12-month average market capitalization above $500 billion—a threshold that, for the time being, applies only to Bitcoin.
Per the legislative documents, the Texas Comptroller’s Office would oversee the reserve, employing cold storage and regular audits to maintain a secure and transparent system.
Legislative supporters, including Lieutenant Governor Dan Patrick, have made the bill a priority, arguing that it would diversify state assets and stimulate local economies.
In areas such as Milam County, where Riot’s Rockdale facility is based, Rochard has argued that mining facilities have become significant local employers and major contributors to public school funding through increased sales tax revenue. These factors are seen as critical in bolstering economic resilience and providing a counterbalance to potential federal fiscal pressures.
Arguments for and against a Texas Bitcoin reserve
Rochard emphasized the legislation’s built-in oversight mechanisms, arguing that robust management protocols and regular audits would mitigate these risks. His remarks framed the reserve as a tactical financial safeguard and also as a strategic move to enhance the state’s autonomy in managing its fiscal future.
The bill also represents a broader trend among states reevaluating their approach to digital assets with a war chest surpassing $23 billion. Texas would join several other states that are exploring legislative measures aimed at integrating cryptocurrencies into public finance strategies.
Proponents argue that such measures could reduce dependence on traditional financial institutions, whose credibility has been undermined by past lapses in transparency and accountability. By leveraging Bitcoin’s decentralized design and immutable ledger, lawmakers contend that a state reserve could serve as a reliable financial counterbalance.
Rochard’s testimony ultimately reinforced the idea that, while Bitcoin carries inherent market risks, its unique properties provide a strong case for its inclusion in state fiscal planning. The Texas Senate Committee is scheduled to vote on the measure in March 2025.
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