tl;dr
The Vice President of Research at Riot Platforms, Pierre Rochard, testified before the Texas Senate Committee on Business and Commerce in support of Senate Bill 21, proposing the establishment of a state Bitcoin reserve. The reserve aims to strengthen state finances amid economic uncertainty, levera...
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. The proposed reserve seeks to strengthen state finances amidst economic uncertainty, leveraging Bitcoin's verifiable ledger and capped supply.
Advocates emphasize Bitcoin's unique attributes and propose the elimination of the $500 million annual cap on Bitcoin acquisitions, allowing investments in other digital assets meeting specific criteria. The Texas Senate Committee is set to vote on the measure in March 2025.
Rochard highlighted Bitcoin's open-source code, verifiable monetary policy, and finite supply, positioning it as a non-dilutive asset for public balance sheets. The proposed legislation permits investments in other digital assets with a 12-month average market capitalization above $500 billion, overseen by the Texas Comptroller’s Office with robust management protocols and regular audits.
Proponents argue that the state reserve would diversify assets, stimulate local economies, enhance strategic autonomy, and offer potential economic resilience. Rochard's testimony underscored Bitcoin's role as a tactical financial safeguard and its potential to reduce dependence on traditional financial institutions.
While acknowledging market risks, Rochard and other advocates advocate for the inclusion of Bitcoin in state fiscal planning, reinforcing its unique properties within the broader context of state finance strategies. The pending vote in March 2025 will determine the fate of the Texas Bitcoin reserve.