New York Mayor Proposes Bitcoin Bond, Calls for BitLicense Repeal

New York City Mayor Eric Adams has announced his intention to launch a Bitcoin bond in the city and has renewed his call to end the state's BitLicense program. Speaking at the Bitcoin 2025 conference, Adams pledged to advocate for and support the creation of municipal bonds backed by Bitcoin (BTC). He emphasized the need for a financial instrument tailored for Bitcoin holders, stating, "We have financial instruments for all other bonds. You can have tax-exempt bonds and other bonds. It is time for the first time in the history of this city to have a financial instrument that is made for those who are holders of Bitcoin."

Adams proposed the concept of a "BitBond," which would allow Bitcoin holders to invest in municipal bonds. Although he did not provide specific details on how the BitBond would function, a policy brief from the Bitcoin Policy Institute suggested a model where holders receive an annual interest rate of 1% for 10 years. Upon maturity, holders would also receive a percentage of any Bitcoin market gains. According to the proposal, 90% of the funds raised through the bonds would be allocated to government spending, while 10% would be used to purchase Bitcoin.

In addition to advocating for the BitBond, Adams called for the repeal of New York's BitLicense program, which was launched in 2015. The program requires crypto businesses to apply for a license with the New York Department of Financial Services and meet strict compliance standards. Adams criticized the BitLicense, describing it as too costly with high licensing fees and overly stringent Anti-Money Laundering and Know Your Customer measures. He stated, "You have a mayor who is the crypto mayor, is the Bitcoin mayor, and I want you back in the city of New York, where you won’t be attacked and criminalized. Let’s get rid of the Bitcoin license and allow us to have the free flow of Bitcoin in our city."

Adams' push to attract crypto firms to New York City is part of his broader effort to foster a more welcoming environment for cryptocurrency businesses. He has been actively working to create a digital advisory council to attract jobs and investments in the crypto sector. Additionally, he announced that financial services company Figure and private equity firms Traction and Scale would be assisting the city in its crypto efforts. Adams' pro-crypto stance and initiatives to integrate digital assets into the city's economic future could influence how local governments engage with cryptocurrency innovation, potentially reshaping the regulatory landscape and fostering a more crypto-friendly environment in New York.