Mamdani Wins NYC Democratic Primary, Faces Crypto-Friendly Opponents

Zohran Mamdani, the Democratic Party candidate for New York City mayor, has secured a victory in the Democratic primary, defeating former New York Governor Andrew Cuomo with 43.5% of the vote. This win positions Mamdani to compete against Republican candidate Curtis Sliwa, current NYC Mayor Eric Adams, and Cuomo, who is reportedly running as an independent candidate following his primary loss.

With the exception of Mamdani, all major candidates have previously held positions favoring the cryptocurrency industry. Adams, who first ran for mayor as a Democrat in 2021, has been a vocal supporter of crypto, accepting his first three paychecks in Bitcoin (BTC) and proposing BTC-backed municipal bonds. He has also spoken at crypto conferences and held a digital asset summit at the mayoral residence. Sliwa, who ran against Adams in 2021, has also advocated for pro-crypto policies, including plans to open more crypto ATMs in New York City and incentivize local businesses to accept digital assets.

Cuomo, on the other hand, has been involved in the cryptocurrency industry in a different capacity. He reportedly advised cryptocurrency exchange OKX in 2021 as US authorities were probing the company for operating an unlicensed money-transmitting business. The exchange ended up paying $505 million in fines and penalties. Mamdani has publicly criticized Cuomo's involvement with the exchange, stating that Cuomo could have spent the years since his 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 public opposition from significant figures in the crypto industry, including Gemini co-founder Cameron Winklevoss. Tyler Winklevoss also floated the idea of “get[ting] involved in the NYC mayor race,” suggesting financial support for a candidate to defeat Mamdani. Both brothers got involved in the 2024 US presidential election, pledging millions of dollars to then-candidate Donald Trump’s campaign. Anthony “Pomp” Pompliano, a Bitcoin proponent and the founder and CEO of Professional Capital Management, who also attended a Trump campaign event in New York City, called on New Yorkers to oppose Mamdani. Hedge fund manager Bill Ackman, with a reported net worth of more than $9 billion, also suggested that he would back any candidate with a chance of defeating Mamdani in the general election, stating that there are hundreds of millions of dollars of capital available to back a competitor to Mamdani that can be put together overnight.

Whoever wins 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 the headquarters of 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, or the fintech space. At the state level, New York’s Department of Financial Services has required businesses offering crypto-related services and products to apply for a BitLicense since 2015. Though many have criticized the licensing program, any future NYC mayor seeking change would likely only be able to apply political pressure to the state’s legislators.