In a bold move on May 28, 2025, New York City Mayor Eric Adams took the stage at Bitcoin 2025 in Las Vegas to call for the dismantling of the BitLicense, a controversial regulatory framework administered by the New York Department of Financial Services (NYDFS). Adams, a vocal advocate for the integration of cryptocurrency into urban financial ecosystems, invited crypto businesses back to New York, expressing a desire to transform the city into a crypto-friendly haven.
A New Vision for New York’s Crypto Landscape
Adams’ remarks come at a pivotal moment. “New York is the Empire State. We don’t break empires. We build empires,” he declared, urging crypto enterprises to “come back home.” His rhetoric underscores a vision to rejuvenate New York’s status as a global financial hub by fostering innovation rather than stifling it through stringent regulations. The BitLicense, instituted in 2015, has been critiqued for its stringent requirements, which have been accused of driving crypto startups out of the state. As explored in U.S. Congress Braces for Intense Debate Over Crypto Legislation This Summer, the national conversation around crypto regulation is heating up, with implications that could resonate beyond New York.
In a city that prides itself on leading financial innovation, Adams’ plea is both a call to action and a promise of reform. The mayor’s stance is particularly striking given the NYDFS’s reputation for rigorous oversight—a double-edged sword that ensures investor protection but may also hinder market agility.
The Promise of BitBonds
In a twist that could redefine municipal finance, Adams floated the concept of a “BitBond,” a municipal bond backed by bitcoin. Though details remain scant, the proposal appears to aim at giving New Yorkers a tax-advantaged avenue to invest in bitcoin while simultaneously bolstering the city’s coffers. According to a policy brief by the Bitcoin Policy Institute, such bonds could allocate 90% of proceeds to fund government initiatives, with the remaining 10% earmarked for bitcoin acquisition. This innovative financial instrument promises a modest annual yield of 1%, with the potential for significant returns tied to bitcoin’s future appreciation.
Crypto analyst Jamie Reynolds noted, “The idea of a BitBond is intriguing. It could democratize access to crypto investment, which has traditionally been the domain of more affluent individuals.” However, the feasibility of such a bond hinges on regulatory approval and market receptivity. For a deeper dive into the regulatory implications, see The SEC Can Learn From the IRS in Making Regulation Simpler for Crypto.
Balancing Regulation and Innovation
Adams’ approach to dismantling the BitLicense while proposing BitBonds suggests a nuanced strategy that balances safety with innovation. In a press conference earlier this month, he acknowledged the dual nature of regulations: “It’s good to know the city is going to have safe regulations in place… but at the same time, we can over-regulate.” His commentary reflects a broader debate within the crypto community—how to safeguard investors without stifling the industry’s growth potential.
Critics caution that eliminating the BitLicense could open the floodgates to unregulated activities, potentially jeopardizing consumer protection. Yet, supporters argue that a recalibrated regulatory framework could attract a wave of innovation, positioning New York as a leader in the digital finance revolution.
The Road Ahead
As Adams gears up for his re-election campaign, now as an independent, his crypto-friendly agenda could become a cornerstone of his platform. The financial and political ramifications of his proposals will likely unfold over the coming months, with stakeholders eagerly watching for further developments.
The potential abolition of the BitLicense and the introduction of BitBonds mark a significant inflection point in the relationship between cryptocurrency and urban governance. Whether these initiatives will inspire a broader regulatory shift or remain aspirational concepts is yet to be seen. As the debate continues, one thing is clear: the conversation around crypto regulation is far from over, and New York City—under Adams’ leadership—appears ready to lead the charge.
In the ever-evolving landscape of cryptocurrency, only time will tell if Adams’ vision will manifest into tangible change or remain a beacon of what could be.
Source
This article is based on: NYC Mayor Eric Adams Calls for the End of NYDFS’ BitLicense, Proposes ‘BitBond’
Further Reading
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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.
