New York City Mayor Eric Adams has stirred the cryptocurrency pot once again. Speaking at the Bitcoin 2025 conference, Adams vowed to champion the creation of a municipal bond backed by Bitcoin—a first for the city. At the same venue, he also reiterated his desire to scrap New York State’s stringent BitLicense program, which many in the industry have criticized for stifling innovation.
Adams’ Bold Bitcoin Bond Vision
During his speech, Adams emphasized the need for financial instruments tailored for Bitcoin holders. “We have financial instruments for all other bonds,” he said with conviction. “It is time for the first time in the history of this city to have a financial instrument that is made for those who are holders of Bitcoin.” The proposal, dubbed “Bitbond,” aims to allow Bitcoin enthusiasts to invest in municipal bonds much like any other bond investment in New York City. This mirrors recent moves by companies like Metaplanet, which has issued $25M bonds to buy more Bitcoin, as detailed in our coverage of Metaplanet’s bond issuance.
Though Adams didn’t provide specifics on the mechanics of Bitbond, a policy brief from the Bitcoin Policy Institute offers a possible blueprint. Under this model, bondholders would enjoy an annual interest rate of 1% over a decade, alongside a slice of the gains should Bitcoin appreciate. The funds raised would predominantly bolster government spending, with a fraction earmarked for Bitcoin purchases.
The BitLicense Debate
Adams didn’t mince words when it came to New York’s BitLicense program, which has been a thorn in the side of crypto businesses since its inception in 2015. The program mandates that crypto companies secure a license from the New York Department of Financial Services, adhering to exhaustive compliance norms. Critics argue it’s a financial albatross, laden with hefty fees and strict regulatory requirements.
“You have a mayor who is the crypto mayor, is the Bitcoin mayor, and I want you back in the city of New York, where you won’t be attacked and criminalized,” Adams declared passionately. He urged for the dismantling of the BitLicense, advocating for a freer Bitcoin economy in the city. The call to action resonates with industry players who view the license as a barrier to entry.
Notably, companies like Circle, Coinbase, and Bakkt have managed to navigate the BitLicense maze, becoming some of the first to secure this badge of compliance. Yet, the process remains a point of contention for many crypto entrepreneurs.
A Broader Crypto Strategy
Adams’ initiatives are part of a grander vision to position New York City as a crypto hub. At the New York City Crypto Summit on May 20, he announced the creation of a digital advisory council aimed at attracting jobs and investments in the burgeoning crypto sector. Earlier in May, he revealed that financial services company Figure and private equity firms Traction and Scale would lend their expertise to the city’s crypto endeavors. This aligns with broader industry trends, such as Metaplanet’s plans to open a US arm and raise $250M for its Bitcoin strategy, as reported in our article on Metaplanet’s expansion.
This renewed push for crypto integration raises intriguing questions about the future of finance in New York. Will the city become a beacon for crypto innovation, or will the challenges of regulatory hurdles and market volatility prove too daunting?
Looking Ahead
As Mayor Adams continues to advocate for a Bitcoin bond and the elimination of BitLicense, the crypto community watches with bated breath. His proposals could redefine the landscape for digital currencies in New York City, potentially setting a precedent for other municipalities.
Yet, as with any bold initiative, there are uncertainties. The feasibility of a Bitcoin-backed municipal bond and the potential implications of removing regulatory safeguards remain open questions. What’s clear is that Adams’ crypto-forward strategy is setting the stage for a fascinating chapter in the city’s financial narrative.
Source
This article is based on: Eric Adams calls for Bitcoin bond in NYC, end to state BitLicense
Further Reading
Deepen your understanding with these related articles:
- North Carolina House passes state crypto investment bill
- Arizona Governor Calls Crypto an ‘Untested Investment,’ Vetoes Bitcoin Reserve Bill
- U.S. Congress Braces for Intense Debate Over Crypto Legislation This Summer (openai)
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
