New York City Comptroller Rejects Mayor’s Bitcoin-Backed Bond Proposal

The clash over New York City’s proposed Bitcoin-backed bonds, known as Bitbond, highlights a fundamental divide in how governments approach the digital asset ecosystem. New York City Comptroller Brad Lander has firmly rejected Mayor Eric Adams’s proposal to issue municipal bonds backed by Bitcoin, labeling the idea as both “legally dubious and fiscally irresponsible.”

Lander, who shares responsibility for the city’s debt issuance alongside the Mayor’s Office of Management and Budget, has made it clear that the city will not pursue any crypto-backed borrowing while he remains in office. He emphasized that cryptocurrencies are not sufficiently stable to finance the city’s infrastructure, affordable housing, or schools. Lander warned that proposing such a move could expose the city to new risks and erode bond buyers’ trust in the city’s debt.

Lander’s rejection comes in response to Mayor Adams’s remarks made during his speech at the Bitcoin 2025 conference in Las Vegas. Adams called for the creation of a “Bitbond,” expressing his intention to make New York a national leader in crypto innovation. He stated, “We need to have a Bitbond, and I’m going to push and fight to get a Bitbond in New York. If it grows in New York, it will cascade through the entire country.”

Adams’s comments follow the city’s first crypto and digital assets summit at Gracie Mansion, where he unveiled a digital assets advisory council aimed at boosting fintech investment and job creation. However, Lander pushed back against the idea, citing legal and regulatory constraints that limit how municipal bonds can be issued and used. He noted that the city can only issue debt for specific public purposes and must do so in compliance with federal tax law.

Lander also highlighted that the city lacks a system to handle infrastructure financing in cryptocurrencies or to convert digital assets into U.S. dollars. He stated, “The current federal tax law regime would most likely neither permit tax-exempt financing for acquiring cryptocurrency nor permit investment gains in excess of the federally subsidized financing costs.”

Mayor Adams, who is seeking re-election this November as an independent, did not respond to requests for comment. Lander, a Democrat and a candidate for mayor himself, made it clear that under his watch, Bitcoin-backed bonds won’t be part of the city’s fiscal strategy. With both candidates positioning themselves for November, the clash over crypto policy could become a defining issue in the race.

Mayor Adams is doubling down on crypto as part of his re-election campaign, echoing Donald Trump’s strategy from last year when Trump vowed to make the U.S. the “crypto capital of the world.” Adams has become a prominent face at crypto events, speaking at the industry’s largest conference alongside figures like VP J.D. Vance and Senator Cynthia Lummis. These events, once dominated by industry leaders, now increasingly feature political figures.

Adams has championed crypto since his 2022 mayoral campaign, famously converting his first three paychecks into Bitcoin and Ethereum. Now, NYC is forming a digital asset advisory council to explore launching a “Bitbond.” A similar federal initiative, proposed by the Bitcoin Policy Institute, suggests bonds partly backed by Bitcoin for a potential strategic reserve.