NYC Mayor Eric Adams Calls For the End of NYDFS’ BitLicense, Proposes ‘BitBond’
New York City Mayor Eric Adams delivered a strong call for the repeal of the BitLicense at the Bitcoin 2025 conference in Las Vegas. He urged crypto businesses to return to New York, emphasizing the city’s potential as a crypto hub and rejecting the notion of New York as a hostile environment for the industry. Adams declared his intention to foster a welcoming atmosphere, contrasting this with the regulatory challenges posed by the BitLicense, a license notoriously difficult to obtain from the New York Department of Financial Services (NYDFS).
His remarks echoed a similar message delivered last week at Gracie Mansion, the mayor’s official residence, during New York City’s inaugural crypto summit. Adams’s stance reflects a shift in his previous comments on the BitLicense. While acknowledging the need for responsible regulation to prevent abuse, he expressed concerns about overregulation, suggesting a potential imbalance between investor protection and the stifling of innovation.
A key element of Adams’s vision is the introduction of a “BitBond,” a municipal bond backed by bitcoin. This innovative financial instrument would offer New York residents tax-advantaged exposure to bitcoin while providing the city with a new avenue for capital acquisition. Although specifics remain undisclosed, the concept aligns with a policy brief published by the Bitcoin Policy Institute in March. This brief proposes a BitBond structure where 90% of proceeds fund government initiatives, with 10% allocated to bitcoin purchases. Bondholders would receive a 1% annual interest rate for 10 years, plus a share of bitcoin’s appreciation upon maturity, with a tiered payout structure designed to share upside gains between bondholders and the city’s bitcoin reserve.
Adams, currently running for re-election as an independent, is clearly positioning himself as a champion of crypto adoption in New York City. His efforts to dismantle regulatory barriers and explore novel financial instruments demonstrate a commitment to establishing New York as a leading center for the cryptocurrency industry. The success of his initiative will hinge on navigating the complexities of balancing innovation with responsible regulation and convincing businesses of New York’s renewed commitment to the crypto sector.
