Crypto Industry Braces for NYC Mayoral Race Impact

Crypto backers are closely watching the New York City mayoral race, as the outcome could significantly influence the city's stance on cryptocurrency and blockchain technology. The Democratic Party candidate, Zohran Mamdani, secured a victory in the primary with 43.5% of the vote, defeating former New York Governor Andrew Cuomo. Mamdani will now face Republican candidate Curtis Sliwa, current NYC Mayor Eric Adams, and Cuomo, who is reportedly running as an independent candidate following his primary loss.

Mamdani's stance on crypto and blockchain differs from his competitors. Adams, who first ran for mayor in 2021, has been a vocal supporter of the cryptocurrency industry. He proposed accepting his first three paychecks in Bitcoin, spoke at crypto conferences, and proposed BTC-backed municipal bonds. Sliwa, who ran against Adams in 2021, also campaigned on pro-crypto messaging, advocating for more crypto ATMs and incentivizing local businesses to accept digital assets. Cuomo, meanwhile, advised cryptocurrency exchange OKX in 2021 while US authorities were investigating the company for operating an unlicensed money-transmitting business.

Mamdani has publicly criticized Cuomo's involvement with OKX, stating that Cuomo could have spent his time since resignation making amends and helping New Yorkers instead of advising a foreign crypto exchange that broke US law. Since his primary win, Mamdani has faced opposition from significant figures in the crypto industry, including Gemini co-founder Cameron Winklevoss and his brother Tyler Winklevoss, who suggested financial support for a candidate to defeat Mamdani. Anthony “Pomp” Pompliano, a Bitcoin proponent, also called on New Yorkers to oppose Mamdani. Hedge fund manager Bill Ackman suggested that he would back any candidate with a chance of defeating Mamdani in the general election, stating that hundreds of millions of dollars of capital could be available overnight to support a competitor.

The outcome of the November election could have a significant impact on New York City’s crypto policies. As one of the biggest business centers in the United States, the city is home to several crypto firms, including stablecoin issuers Paxos and Circle, cryptocurrency exchange Gemini, and payments company MoonPay. Mayor Adams has stated that New York City is open for business in the crypto, blockchain, Web3, and fintech spaces. However, any future NYC mayor seeking change in the state's crypto regulations would likely only be able to apply political pressure to the state’s legislators, as the licensing program is overseen by the state's Department of Financial Services.