Texas: Bitcoin Miner Urges State Reserve for Economic Stability

Bitcoin miner Riot tells Texas Congress state Bitcoin reserve needed to ‘prepare for future downturns’

Riot Platforms’ VP of Research, Pierre Rochard, testified before the Texas Senate Committee on Business and Commerce in support of Senate Bill 21, which aims to establish a state Bitcoin reserve. His testimony on Feb. 18 highlighted 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 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. He noted that Bitcoin’s open-source code and independently verifiable monetary policy allow for complete audibility, contrasting its issuance process with the discretionary issuance models of other cryptocurrencies.

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 and investors’ tendency to hold their coins long-term contribute to its potential as a non-dilutive asset for public balance sheets.

The proposed legislation eliminates the previous $500 million annual cap on Bitcoin acquisitions, 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.

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.

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 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