NYC Comptroller Dismisses Mayor Adams’s “Bitbond” Initiative Due to Legal and Financial Concerns

Key Takeaways:

• New York City Comptroller Brad Lander has decisively dismissed Mayor Eric Adams’s plan to issue municipal bonds supported by Bitcoin.
• Lander cautioned that utilizing unstable crypto assets for financing infrastructure and housing initiatives could damage investor trust in the city’s debt.
• Political tensions rise as Lander (a candidate for mayor) positions himself as a fiscal realist in opposition to Adams’s crypto-friendly policies.

New York City Comptroller Brad Lander has turned down Mayor Eric Adams’s suggestion to issue municipal bonds backed by Bitcoin, labeling the concept as both “legally questionable and financially irresponsible.”

Lander, who shares oversight of the city’s debt issuance with the Mayor’s Office of Management and Budget, made it clear that the city will not engage in any crypto-backed borrowing during his tenure.

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Lander stated in a Thursday announcement that “Cryptocurrencies lack the necessary stability to fund our city’s infrastructure, affordable housing, or educational institutions,” as reported by Bloomberg.

He further remarked, “Suggesting that New York City should incorporate crypto into its capital planning could expose our city to additional risks and diminish bondholders’ confidence in our city.”

New York City Comptroller Brad Lander opposed Mayor Eric Adams’s proposed Bitcoin-backed municipal bond (Bitbond) initiative, describing the notion as “legally questionable and financially irresponsible.” He pointed out that under U.S. tax regulations, municipal bonds cannot be utilized to acquire cryptocurrencies or…

— Wu Blockchain (@WuBlockchain) May 30, 2025

This response follows comments made by Mayor Adams on Wednesday during his address at the Bitcoin 2025 conference in Las Vegas.

Speaking to an audience of crypto supporters, Adams advocated for the establishment of a “Bitbond,” expressing his desire to position New York as a national leader in crypto innovation.

“We need to have a Bitbond, and I’m going to advocate and strive to secure a Bitbond in New York,” Adams stated. “If it flourishes in New York, it will have a ripple effect across the entire nation.”

The mayor’s remarks came just a week after he hosted the city’s inaugural crypto and digital assets summit at Gracie Mansion, where he introduced a digital assets advisory council aimed at enhancing fintech investment and job creation in the city.

However, Lander strongly opposed the proposal. He highlighted legal and regulatory limitations that restrict how municipal bonds can be issued and utilized. According to him, the city is only permitted to issue debt for designated public purposes and must adhere to federal tax regulations.

“The existing federal tax law framework would likely neither allow tax-exempt financing for acquiring cryptocurrency nor permit investment returns exceeding the federally subsidized financing costs,” Lander stated.

He also pointed out that the city lacks any infrastructure for financing projects in cryptocurrencies or converting digital assets into U.S. dollars.

Adams, who is campaigning for re-election this November as an independent, did not respond to inquiries for comment.

Lander, a Democrat and a mayoral candidate himself, made it clear that during his administration, Bitcoin-backed bonds will not be included in the city’s financial strategy.

As both candidates prepare for the November election, the dispute over crypto policy may become a pivotal issue in the campaign.

Mayor Mirrors Trump’s Crypto Strategy Amid Increasing Political Support for Digital Assets

Mayor Adams is reinforcing his commitment to crypto as part of his re-election campaign, reflecting Donald Trump’s approach from the previous year when Trump pledged to establish the U.S. as the “crypto capital of the world.”

Trump’s initiatives included issuing an executive order to form a digital asset task force and hosting the White House’s inaugural crypto summit in March with leading industry executives.

Trump Hosts First White House Crypto Summit
President Donald Trump hosted the first-ever White House Crypto Summit on Friday, a landmark event bringing together top industry leaders, regulators, and government officials together.

— Cryptonews.com (@cryptonews) March 14, 2025

Adams, who was recently cleared of corruption allegations by the DOJ, a decision that led to backlash and resignations, has emerged as a prominent figure at crypto events.

In Las Vegas, he addressed the industry’s largest conference alongside notable figures such as VP J.D. Vance and Senator Cynthia Lummis. These gatherings, once primarily attended by industry leaders, are increasingly featuring political figures.

At a side event organized by Tether co-founder Brock Pierce, Adams made another appearance, highlighting a long-standing connection dating back to his time in Brooklyn. Last fall, Pierce even co-hosted a fundraiser for him in Puerto Rico.

Adams has been an advocate for crypto since his 2022 mayoral campaign, famously converting his initial three paychecks into Bitcoin and Ethereum.

Currently, NYC is establishing a digital asset advisory council to investigate the possibility of launching a “Bitbond.”

A similar federal initiative, proposed by the Bitcoin Policy Institute, suggests bonds partially backed by Bitcoin for a potential strategic reserve.

The post NYC Comptroller Rejects Mayor Adams’s “Bitbond” Proposal as Legally and Fiscally Flawed appeared first on Cryptonews.