Three years before cryptocurrencies took center stage in the first US presidential election, another crypto-centric race was taking place in New York City to determine the replacement for Mayor Bill DeBlasio.
Democrat Eric Adams is facing Republican Curtis Sliwa, and both campaigned on promises to be pro-crypto mayors. Adams recently defeated Andrew Yang, another crypto advocate, in the Democratic primary.
On the campaign trail, Adams promised to make New York City “the hub of Bitcoins.” He was elected mayor in November 2021, after which he continued to pledge that the city would become “the hub of the cryptocurrency industry” and suggested that cryptocurrency should be taught in schools.
Nearly three years after being elected mayor, Adams was indicted by the Federal Bureau of Investigation and charged with “bribery, campaign finance, and conspiracy” in connection with criminal activities spanning nearly a decade. Seven senior officials have resigned from his administration, and several others associated with his administration have been charged or investigated.
With his political career in jeopardy, whether Adams has had a positive impact on crypto in NYC depends on one’s perspective. His administration has defended his record, but residents say nothing truly impressive has emerged. At the same time, many in the crypto community have grown increasingly concerned about the industry’s association with controversial figures like Adams.
Eric Adams' Achievements in Cryptocurrency
Fresh off his election victory, Adams began a friendly rivalry with crypto-friendly Miami Mayor Francis Suarez, who promised to take one of his paychecks 100% in Bitcoin (BTC). In response, Adams said he would take his first three paychecks in cryptocurrency — a promise he later fulfilled with the help of Coinbase.
NYC elected officials are required to complete a financial disclosure form each year, which asks, among other things, whether they own any securities. In his 2023 financial disclosure form, Adams indicated that he holds between $5,000 and $54,999.99 in Bitcoin — which would appear to be his first paycheck.
Mayor Eric Adams’ reported Bitcoin holdings as of the end of 2023. Source: NYC Conflicts of Interest Board
Adams also continued to publicly express his support for cryptocurrency after taking office. In June 2022, he criticized a two-year moratorium on new non-renewable proof-of-work mining operations in New York passed by the State Senate, reportedly asking the governor to veto the bill. Six months later, amid a sharp market decline, Adams reaffirmed his support for cryptocurrency innovation despite falling prices.
In February 2023, the New York City Council's Technology Committee held an oversight hearing to discuss blockchain, cryptocurrencies, and other innovative digital tools. The hearing was attended by the city's chief technology officer, Matthew Fraser, appointed to his position by Adams.
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Fraser outlined a number of initiatives the administration is working on, including launching educational efforts, helping to host conferences and events, and developing an official digital wallet for city employees and public benefits that would also accept cryptocurrency. At the time of writing, it is unclear what the status of these projects is and if there is any concrete timeline for their implementation.
A representative from the city's Office of Technology and Innovation (OTI) told TinTucBitcoin that the agency remains “committed to responsibly deploying emerging technology to improve service delivery, optimize city agencies, and ensure the safety of New Yorkers.”
“We will continue to assess the practical requirements and risks of blockchain applications in the public sector.”
The representative pointed to OTI’s hiring of a blockchain and digital asset policy advisor in 2024 as an example of its continued efforts. According to an expired job posting, the advisor’s primary duties are to “assist in defining and implementing New York’s Digital Asset strategy.”
Adams was again asked about his commitment to Bitcoin in a July 2024 interview on local FOX5 news show The 5 O’clock News. He told the hosts that in addition to Bitcoin, “we should look at other cryptocurrencies as well as cashless wallets.”
“There is so much we can do. We should not fear this new form of payment for goods and services. We should embrace it.”
Has NYC Become a Bitcoin City?
While OTI defends the Adams administration’s record on cryptocurrency, not everyone is convinced it has had a tangible impact on the ground. As OTI points out, the city prioritizes “reasonable implementations” to keep New Yorkers safe.
“This means carefully evaluating these technologies so we can deliver real benefits to New Yorkers — rather than just chasing trends.” What is considered reasonable will vary widely from person to person.
Thomas Pacchia, founder of NYC Bitcoin bar PubKey, told TinTucBitcoin that “nothing that I notice” has changed since Adams took over. “If there were specific programs, they never really reached my desk at PubKey or any other operation that I did.”
PubKey recently made headlines after Republican presidential candidate Donald Trump stopped by and paid for a burger using the Bitcoin Lightning Network. The bar regularly hosts politicians, both Republicans and Democrats, who come to learn about Bitcoin and blockchain or attend events promoting pro-cryptocurrency policies. However, according to Pacchia:
“We have never heard anything from his office, from the mayor's office, which I think speaks volumes in itself.”
Part of the difficulty the city faces is that no matter how crypto-friendly a mayoral administration is, the city is still bound by the state — and New York is perhaps the most regulated state in the US when it comes to cryptocurrencies.
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Donald Trump (center) at PubKey with Thomas Pacchia (right) Source: PubKey
The Attorney General’s Office has pursued lawsuits against Gemini, KuCoin, and Tether, while the Department of Financial Services requires companies that want to provide digital asset services to apply for and receive a BitLicense — a complex and expensive licensing process.
New York’s BitLicense regime has become unpopular with crypto businesses and entrepreneurs and is a constant source of complaints. According to Pacchia, it “discourages Bitcoin businesses from even considering New York.”
“It's unfortunate any time you see a terms of service or something like that that has New York State listed alongside North Korea and Iran and other banned countries — don't use this if you're based in New York State.”
Julie Samuels, president and CEO of Tech:NYC — a nonprofit that advocates for tech-friendly policies — told TinTucBitcoin, “New York’s strict licensing structure for virtual currency businesses is intended, in part, to increase consumer confidence. In concept, this could actually be a big boost for the cryptocurrency landscape here, as New York is the first state to take this action to set out clear rules for companies to comply with.”
However, “The lengthy time it takes to obtain a license, and inconsistent access to staff at the Department of Financial Services for potential license applicants, has clearly slowed growth in the industry and limited the economic impact that cryptocurrency companies can have for the state.”
The solution to creating a truly crypto-friendly city in NYC is simple, according to Pacchia: “Get rid of the BitLicense.” He admits that Adams alone doesn’t have this power, “but as mayor of New York, it’s a big platform to start making progress with sensible and practical pieces of regulation.”
The Future of Adams' Pro-Crypto Policies If He Leaves Office
Given Mayor Adams' legal situation, it's unclear what will happen next. He has so far rejected calls to resign and said he will fight the charges "with all my strength and spirit." On October 9, he reaffirmed that he has no plans to resign and will run for re-election in 2025. He faces up to 45 years in prison if convicted.
There is a possibility that Adams could be removed from office by state Governor Kathy Hochul, but she has so far resisted calls to do so. He could also be removed by a “special mayoral qualifications commission.” If he were removed from office or decided to resign, the city’s public guardian, Jumaane Williams, would take over and a special election would be held to determine a new mayor.
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Williams can't remove any of Adams' appointees — including crypto-friendly chief technology officer Fraser — so it's unlikely any of the city's blockchain initiatives will be canceled in the short term. But whoever replaces Adams will have the power to ramp up, scale back, or abandon the initiatives.
In any case, Adams will face a significant fight in the next election in 2025, meaning his policies could end up being thrown out, regardless.
The Promises and Risks of Politicians
Adams is not the only prominent pro-crypto American politician facing various criminal charges. Trump, the most famous of these, is currently involved in four separate lawsuits.
Some in the cryptocurrency community are beginning to worry that cryptocurrency’s association and support for controversial political figures is a negative for the industry. Ethereum co-founder Vitalik Buterin recently caused a stir by saying that people should not vote for cryptocurrencies in a single-issue fashion, arguing that they should consider a candidate’s broader views on other issues.
Two weeks later, National Security Agency whistleblower Edward Snowden echoed this sentiment, telling conference attendees at Bitcoin 2024 that they should “vote, but don’t join a cult.”
So, what can we learn from Mayor Adams’ example? Perhaps one lesson is that electing a crypto-friendly politician may actually lead to the implementation of at least some pro-crypto policies, although it is certainly not a guarantee that a politician will follow through on a particular campaign promise.
On the other hand, any one person is often limited in what they can do alone. Even presidents must rely on Congress to carry out many of the actions they want to take.
Adams is also a reminder that, no matter how crypto-friendly an elected official's policies are, they bring their own potential baggage into office, and their unrelated leadership decisions can be unpopular or deeply controversial.
A December 2023 Quinnipiac University poll found that Adams was the most unpopular NYC mayor since the survey began in 1996, while a more recent Marist poll from October 1 revealed that 69% of registered voters thought he should resign.
However, blockchains like Bitcoin are purpose-built so that no mayor or even president can ultimately lead their future. So people can take some solace in the fact that no matter what politicians and officials do, whether they support the space or not — and whether they are loved or hated — cryptocurrency itself will continue to evolve as it always has.
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