Three years before cryptocurrency became a talking point in the United States presidential election for the first time, a different crypto-focused race was brewing in New York City to determine who would replace outgoing Mayor Bill DeBlasio.
Democrat Eric Adams was squaring off against Republican Curtis Sliwa, and both were campaigning on the promise of being pro-crypto mayors. Adams had recently defeated Andrew Yang, another crypto proponent, in the Democratic Party primary.
On the campaign trail, Adams promised to make NYC the “center of Bitcoins.” He was elected mayor in November 2021, after which he continued to pledge the city would become “the center of the cryptocurrency industry” and argued cryptocurrency should be taught in schools.
Nearly three years after he was elected mayor, Adams was indicted by the Federal Bureau of Investigation and charged with “bribery, campaign finance, and conspiracy offenses” related to alleged criminal activities that spanned nearly a decade. Seven senior officials have resigned from his administration, and several others linked to his administration have been charged or are reportedly under investigation.
With his political career now at risk, whether Adams left a positive impact on crypto in NYC depends on who you ask. His administration defended his record, but those on the ground say nothing impactful has actually materialized. At the same time, many in the crypto community are increasingly concerned about the industry’s association with controversial figures like Adams.
Eric Adams’ record on crypto
Fresh off his election win, Adams entered into a friendly rivalry with crypto-friendly Miami Mayor Francis Suarez, who had pledged to receive one of his paychecks 100% in Bitcoin (BTC). In response, Adams said he would take his first three paychecks in crypto — a promise he later fulfilled with the help of Coinbase.
Promise made. Promise kept. pic.twitter.com/rSafDZDViN
— Mayor Eric Adams (@NYCMayor) January 21, 2022
NYC elected officials are required to complete a financial disclosure form every year that asks, among other questions, whether they own any securities. In his 2023 disclosure, Adams indicated he holds between $5,000 and $54,999.99 worth of Bitcoin — so it appears he has continued to hodl from his first paychecks.
Eric Adams’ reported Bitcoin holdings as of the end of 2023. Source: NYC Conflicts of Interest Board
Adams also continued to publicly express pro-crypto stances after taking office. In June 2022, he decried a two-year moratorium on new non-renewable-energy 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 the depths of the bear market, Adams reiterated his support for crypto innovation despite the downturn in prices.
In February 2023, the New York City Council’s Committee on Technology held an oversight hearing to discuss blockchain, cryptocurrency and other innovative digital tools. In attendance was the city’s chief technology officer, Matthew Fraser, who was appointed to his position by Adams.
Fraser outlined several initiatives the administration was working on, including launching education efforts, helping to organize conferences and events, and developing an official digital wallet for city workers and recipients of public benefits that would also accept cryptocurrencies. At the time of writing, it is unclear the status of these projects and if there is a timeline for their rollout.
A representative for the city’s Office of Technology and Innovation (OTI) told Cointelegraph that the agency remains “committed to responsibly deploying emerging technologies to improve service delivery, optimize city agencies and keep New Yorkers safe.”
“We will continue to assess both the practical requirements and risks of blockchain applications in the public sector.”
The representative pointed to the OTI’s 2024 hiring of a digital assets and blockchain policy adviser as an example of its continued efforts. According to an expired job listing, the adviser’s primary role is to “support defining and implementing NYC’s Digital Asset strategy.”
Adams was again asked about his commitment to Bitcoin during a July 2024 interview on the local TV station FOX5’s The 5 O’clock News program. He told the anchors that in addition to Bitcoin, “we should look at other forms of cryptocurrency as well as others. Cashless wallets.”
“There’s so much we can do. We should not be afraid of this new form of paying for goods and services. We should embrace it.”
Is NYC now a Bitcoin city?
While the OTI defended the Adams administration’s record on crypto, not everyone believes he has had a tangible impact on the ground. As the OTI pointed out, the city prioritizes “reasonable” deployments that keep New Yorkers safe.
“This means carefully evaluating these technologies so that we’re providing real benefits to New Yorkers — rather than merely chasing trends.” What is considered reasonable will vary widely from person to person.
Thomas Pacchia, founder of the NYC-based Bitcoin bar PubKey, told Cointelegraph that “nothing that I can notice” has changed since Adams took over. “If there were specific programs, it never really came across my desk at PubKey or any of the other stuff that I’ve done.”
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 Republican and Democrat, who come to learn about Bitcoin and blockchain or to participate in events promoting pro-crypto policies. However, according to Pacchia:
“We never heard anything from his office, from the mayor’s office, which I think sort of speaks volumes.”
Part of the difficulty faced in the city is that regardless of how crypto-friendly any mayoral administration may be, the city is still beholden to the state — and New York state has arguably the country’s strictest regulators when it comes to crypto.
Donald Trump (center) at PubKey alongside Thomas Pacchia (right) Source: PubKey
The Office of the Attorney General has pursued cases against Gemini, KuCoin and Tether, while the Department of Financial Services requires companies wanting to offer digital asset services to apply for and receive a BitLicense — a complex and expensive licensing process.
New York’s BitLicense regime has been incredibly unpopular among crypto businesses and entrepreneurs and is a constant source of complaints. According to Pacchia, it’s “preventing Bitcoin businesses from even considering coming to New York state.”
“It’s unfortunate anytime you see a term of service or something like that to have New York state listed alongside North Korea and Iran and other sanctioned countries — do not use this if you’re based in New York state.”
Julie Samuels, president and CEO of Tech:NYC — a nonprofit advocacy group pushing for tech-friendly policies — told Cointelegraph, “New York’s strict licensing structure for virtual currency businesses is meant, in part, to boost consumer trust. In concept, this could actually be a huge boost for the crypto scene here, as New York is the first state to take this kind of action to set out clear rules of the road for companies to follow.”
However, “The protracted timeframe for securing a license, and the inconsistent accessibility to staff at the Department of Financial Services for potential license applicants, has clearly slowed the pace of growth in the sector and limited the economic impact crypto companies can have for the state.”
The solution to make NYC truly a crypto-friendly city is very straightforward, according to Pacchia: “Throw out the BitLicense.” He acknowledged that Adams alone doesn’t have this power, “but being the mayor of New York, that’s a pretty big podium to start to make progress with common sense and practical pieces of regulation.”
The future of Adams’ pro-crypto policies if he leaves office
Given Mayor Adams’ legal predicament, what will come next for him is unclear. He has so far refused calls to resign and said he would fight the charges against him “with every ounce of my strength and spirit.” On Oct. 9, he reiterated that he had no plans to resign and would seek reelection in 2025. He faces up to 45 years in prison if found guilty.
It’s possible that Adams could be forced out of office by the state’s governor, Kathy Hochul, but she has so far resisted calls to do so. He could also be removed by a special “committee on mayoral inability.” If he is removed from office or does decide to resign, the city’s public advocate, Jumaane Williams, will assume power and a special election will be held to determine a new mayor.
Williams could not remove any of Adams’ appointees — including pro-crypto chief technology officer Fraser — so it’s unlikely any of the city’s blockchain initiatives would be canceled in the short term. But whoever replaces Adams would have the power to ramp up, wind down or leave the initiatives alone.
Either way, Adams would face a seriously uphill battle in 2025 during the next election, meaning his policies could eventually go out the window, regardless.
The promises and risks of politicians
Adams is not the only well-known pro-crypto American politician facing various criminal indictments. Trump, the most famous of the bunch, is currently embroiled in four separate legal cases.
Some in the crypto community are beginning to worry that crypto’s growing association with and support of controversial political figures is a net negative for the industry. Ethereum co-founder Vitalik Buterin recently ruffled some feathers when he said people should not be single-issue voters for crypto, arguing they should consider a candidate’s broader stance on other issues.
Two weeks later, National Security Agency whistleblower Edward Snowden echoed this sentiment, telling conference-goers at Bitcoin 2024 that they should “cast a vote, but don’t join a cult.”
So, what can be learned from the example of Mayor Adams? Perhaps one lesson is that electing a pro-crypto politician can, in fact, result in the implementation of at least some pro-crypto policies, though it’s certainly never a guarantee that a politician will follow through on a specific campaign promise.
On the other hand, any one person is typically limited in what they can do on their own. Even the president must turn to Congress in order to accomplish many of the actions they wish to take.
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Adams is also a reminder that, regardless of how pro-crypto an elected official’s policies are, they also bring any baggage they may have with them into office, and their other unrelated leadership decisions may be deeply unpopular or controversial.
A December 2023 Quinnipiac University poll found that Adams was the most unpopular NYC mayor since polling began in 1996, while a more recent Marist poll from Oct. 1 revealed that 69% of registered voters thought he should resign.
However, blockchains like Bitcoin are intentionally built so that no single mayor or even president can ultimately direct their future. So, people can perhaps take some comfort in the fact that whatever politicians and elected officials do, whether they are supportive of the space or not — and whether they are loved or hated — crypto itself will continue to chug on just as it always has.
