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, whose graduate studies at University of Texas at Austin began in 2012 highlighted his extensive writing on Bitcoin, said that a government reserve could be used as a buffer against economic fluctuations.
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.”
Also, he explained the self-custody concept and how multi-signature wallets can be used to decentralize and democratize wealth storage with 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 legislation would eliminate the existing $500 million cap per year on Bitcoin transactions, allowing state officials to respond to changing market conditions by adjusting their investment level. 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.
The bill has been a top priority for many legislators, including the Lieutenant Governor Dan Patrick. He argues that it will help diversify state assets, and also 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. The factors considered are crucial in strengthening economic resilience, and provide a counterbalance against potential fiscal pressures from the federal government.
Arguments in favor and against the creation of 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.
This bill is part of a larger trend where states are reevaluating how they approach digital assets. The war chests in these states exceed $23 billion. Texas joins several other states in exploring legislation aimed at integrating cryptocurrency into public financing strategies.
Such measures, say their supporters, could help reduce dependence on conventional financial institutions whose reputation has suffered from past failures of 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. Texas Senate Committee will vote on this measure in March of 2025.
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