Key Takeaways:
New York City Comptroller Brad Lander has emphatically turned down Mayor Eric Adams’s initiative to launch Bitcoin-backed municipal bonds. Lander cautioned that relying on unstable cryptocurrency assets to finance infrastructure and housing projects could diminish investor confidence in the city’s financial obligations.
With the political landscape heating up, Lander, a contender in the mayoral race, is casting himself as a fiscal realist opposed to Adams’s cryptocurrency-friendly strategy.
In a statement, Lander described Adams’s proposal as “legally dubious and fiscally irresponsible.” He reiterated that, while in office, the city will refrain from engaging in any borrowing backed by cryptocurrency.
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On Thursday, Lander expressed concern, stating, “Cryptocurrencies are not sufficiently stable to finance our city’s infrastructure, affordable housing, or schools,” as reported by Bloomberg. He further remarked, “Proposing that New York City should open its capital planning to crypto could expose our city to new risks and erode bond buyers’ trust in our city.”
The Comptroller’s rebuke comes in response to comments made by Mayor Adams at the Bitcoin 2025 conference in Las Vegas, where he advocated for the establishment of a “Bitbond.” Adams is eager to position New York as a frontrunner in cryptocurrency innovation.
“We need to have a Bitbond, and I’m going to push and fight to get a Bitbond in New York,” Adams declared. “If it grows in New York, it will cascade through the entire country.”
This announcement followed Adams’s recent hosting of the city’s first crypto and digital assets summit at Gracie Mansion, during which he introduced a new digital assets advisory council aimed at promoting fintech investment and job creation.
However, Lander firmly challenged the mayor’s vision. He highlighted existing legal frameworks and constraints that dictate the conditions under which municipal bonds may be issued or utilized. Lander pointed out that municipal bonds are restricted to specific public purposes and must align with federal tax regulations.
According to Lander, “The current federal tax law regime would most likely neither permit tax-exempt financing for acquiring cryptocurrency nor permit investment gains in excess of the federally subsidized financing costs.”
Moreover, he noted that the city lacks a system to manage financing for infrastructure using cryptocurrencies or to convert digital assets into dollars.
As Adams seeks re-election this November as an independent candidate, he has yet to respond to requests for comment on Lander’s statements. Meanwhile, Lander, representing the Democratic Party and also running for mayor, has firmly stated that Bitcoin-backed bonds will not feature in the city’s financial planning during his administration.
This dispute over crypto policy could emerge as a pivotal issue in the upcoming electoral contest, with both candidates gearing up for November.
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As part of his re-election strategy, Mayor Adams is doubling down on the cryptocurrency narrative, paralleling the approach taken by former President Donald Trump last year when he aimed to establish the U.S. as the “crypto capital of the world.”
Trump’s administration implemented measures including an executive order to set up a digital asset task force and held the first-ever White House crypto summit, engaging key industry leaders.
Since being cleared of corruption charges by the DOJ, which faced public backlash and triggered resignations, Adams has emerged as a notable figure at crypto-related events. He recently spoke at a major conference in Las Vegas, sharing the stage with political figures such as VP J.D. Vance and Senator Cynthia Lummis.
At a side event hosted by Brock Pierce, co-founder of Tether, Adams reaffirmed his long-standing relationship with the crypto community, which dates back to his days in Brooklyn. Last fall, Pierce co-hosted a fundraiser for Adams in Puerto Rico.
Since his initial campaign for mayor in 2022, Adams has been a vocal proponent of cryptocurrency, famously converting his first three paychecks into Bitcoin and Ethereum. Currently, New York City is taking steps to establish a digital asset advisory council to investigate the potential launch of a “Bitbond.”
An analogous federal initiative proposed by the Bitcoin Policy Institute suggests the exploration of bonds partially backed by Bitcoin as part of a potential strategic reserve.
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