Riot Platforms’ VP of Analysis, Pierre Rochard, yesterday testified earlier than the Texas Senate Committee on Enterprise and Commerce in help of Senate Invoice 21, which might set up a state Bitcoin reserve.
His testimony on Feb. 18 detailed the proposal’s position in strengthening state funds amid financial uncertainty and emphasised Bitcoin’s verifiable ledger and capped provide as key attributes that set it aside from different digital belongings.
Rochard, who highlighted how he has written extensively on Bitcoin and contributed to open-source initiatives since his graduate research on the College of Texas at Austin in 2012, defined {that a} state reserve would function a hedge in opposition to future downturns.
Rochard famous that Bitcoin’s open-source code and independently verifiable financial coverage enable for full audibility, contrasting its issuance course of—counting on aggressive public mining—with the discretionary issuance fashions of different cryptocurrencies like “ETH or XRP.”
He additionally defined self-custody and the ability of multi-sig wallets in decentralizing and democratizing wealth storage utilizing Bitcoin.
In his remarks, he emphasised that Bitcoin’s finite provide—fewer than 21 million cash will ever be issued—and buyers’ tendency to carry their cash long-term contribute to its potential as a non-dilutive asset for public stability sheets.
Texas Bitcoin reserve laws
The proposed laws eliminates the earlier $500 million annual cap on Bitcoin acquisitions, thereby granting state officers better flexibility to regulate funding ranges in response to market situations. SB 21 additionally permits investments in different digital belongings in the event that they preserve a 12-month common market capitalization above $500 billion—a threshold that, in the interim, applies solely to Bitcoin.
Per the legislative paperwork, the Texas Comptroller’s Workplace would oversee the reserve, using chilly storage and common audits to keep up a safe and clear system.
Legislative supporters, together with Lieutenant Governor Dan Patrick, have made the invoice a precedence, arguing that it could diversify state belongings and stimulate native economies.
In areas comparable to Milam County, the place Riot’s Rockdale facility relies, Rochard has argued that mining services have change into vital native employers and main contributors to public college funding by elevated gross sales tax income. These components are seen as vital in bolstering financial resilience and offering a counterbalance to potential federal fiscal pressures.
Arguments for and in opposition to a Texas Bitcoin reserve
Rochard emphasised the laws’s built-in oversight mechanisms, arguing that strong administration protocols and common audits would mitigate these dangers. His remarks framed the reserve as a tactical monetary safeguard and likewise as a strategic transfer to boost the state’s autonomy in managing its fiscal future.
The invoice additionally represents a broader development amongst states reevaluating their method to digital belongings with a battle chest surpassing $23 billion. Texas would be a part of a number of different states which might be exploring legislative measures aimed toward integrating cryptocurrencies into public finance methods.
Proponents argue that such measures may scale back dependence on conventional monetary establishments, whose credibility has been undermined by previous lapses in transparency and accountability. By leveraging Bitcoin’s decentralized design and immutable ledger, lawmakers contend {that a} state reserve may function a dependable monetary counterbalance.
Rochard’s testimony in the end bolstered the concept that, whereas Bitcoin carries inherent market dangers, its distinctive properties present a robust 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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