New York City Mayor Eric Adams has proposed launching a bitcoin – backed municipal bond and called for the repeal of the state’s BitLicense program. Here are the details:
Bitcoin – Backed Municipal Bond
Proposal Introduction: At the Bitcoin 2025 conference, Adams pledged to advocate for and support the creation of such bonds. He believes it’s time to have a financial instrument for bitcoin holders in the city. He didn’t disclose specific details, but the Bitcoin Policy Institute proposed a model in a March 31 policy brief. In this model, bond holders would receive an annual interest rate of 1% for 10 years. When the bond matures, they would also get a percentage of any bitcoin market gains. Additionally, 90% of the funds raised through the bonds would be allocated to government spending, and 10% would be used to purchase bitcoin.
Repeal of BitLicense Program
Program Overview: The BitLicense program was launched by New York in 2015. It requires crypto businesses to apply for a license with the New York Department of Financial Services and meet strict compliance standards.
Criticism of the Program: The program has received criticism from the industry. Adams has said it is too costly due to high licensing fees and too stringent with its anti – money – laundering and know – your – customer measures. He believes it has driven cryptocurrency businesses away from New York and is a hindrance to innovation. He has urged cryptocurrency businesses to return to New York City, promising a more welcoming regulatory environment.
Adams has been actively pushing to attract crypto firms to New York City. As part of his efforts, he told the inaugural New York City Crypto Summit on May 20 that he was creating a digital advisory council to attract jobs and investments. On May 12, he announced that financial services company Figure and private equity firms Traction and Scale would be assisting the city in its crypto efforts.
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