Surface electromyogram (sEMG) signals result from muscle movement and hence they are an ideal candidate for benchmarking event-driven sensing and computing. We propose a simple yet novel approach for optimizing the spike encoding algorithm's hyper-parameters inspired by the readout layer concept in reservoir computing. Using a simple machine learning algorithm after spike encoding, we report performance higher than the state-of-The-Art spiking neural networks on two open-source datasets for hand gesture recognition. The spike encoded data is processed through a spiking reservoir with a biologically inspired topology and neuron model. When trained with the unsupervised activity regulation CRITICAL algorithm to operate at the edge of chaos, the reservoir yields better performance than state-of-The-Art convolutional neural networks. The reservoir performance with regulated activity was found to be 89.72% for the Roshambo EMG dataset and 70.6% for the EMG subset of sensor fusion dataset. Therefore, the biologically-inspired computing paradigm, which is known for being power efficient, also proves to have a great potential when compared with conventional AI algorithms. © 2021 Owner/Author.