NYC Comptroller rejects Mayor Adams’s proposal for Bitcoin-backed bonds

New York City Comptroller Brad Lander has criticized Mayor Eric Adams’s connection to contented municipal bonds backed by Bitcoin, informing that specified a determination would present fiscal hazard and undermine capitalist confidence.

In a May 29 statement, Lander said helium would not let the New York City to contented the crypto-tied indebtedness instrumentality portion helium is successful office. Lander’s bureau shares work for indebtedness issuance with the Mayor’s Office of Management and Budget.

“Cryptocurrencies are not sufficiently unchangeable to concern our City’s infrastructure, affordable housing, oregon schools,” the comptroller said, adding that the connection exposes the metropolis
”to caller risks and erode enslaved buyers’ trust.” 

According to Bloomberg, Lander is besides a imaginable contender to win Adams successful November’s election, moving arsenic a Democrat, portion Adams is seeking reelection arsenic an independent.

Adams announced plans to introduce a municipal enslaved backed by Bitcoin, oregon Bitbond, connected May 28 astatine the Bitcoin 2025 league successful Las Vegas, Nevada. Adams besides reiterated calls to repeal New York State’s BitLicense program.

“I judge we request to person a Bitbond, and I americium going to propulsion and combat to get a Bitbond successful New York truthful you tin bash those aforesaid enslaved investments successful New York City,” Adams told the assemblage astatine the conference. 

New York City Mayor Eric Adams speaking astatine Bitcoin 2025: YouTube

A March argumentation little from the Bitcoin Policy Institute, a Bitcoin lobby group, outlined a imaginable exemplary for BitBonds. According to the document, bondholders would gain a 1% yearly involvement complaint implicit a 10-year period, and upon maturity, they’d besides person a stock of immoderate gains successful the terms of Bitcoin. The papers besides proposes that 90% of the funds raised would spell toward authorities spending, portion the remaining 10% would beryllium utilized to acquisition Bitcoin for a strategical reserve.

Lander’s connection included a simulated exemplary of the bond’s imaginable structure. According to the document, investors would person 100% of Bitcoin appreciation up to a 4.5% threshold compound yearly instrumentality for 10 years. “Upon achieving the threshold, investors person 50% of further Bitcoin appreciation. The authorities retains the remaining 50% of gains beyond the threshold.” 

Adams has yet to supply further details connected however the projected BitBond would function. Lander’s connection emphasized that New York City chiefly issues bonds to money superior assets, and tin concern different purposes lone nether precise constricted and narrowly defined circumstances. Under Comptroller’s Directive 10, superior assets are semipermanent investments similar infrastructure oregon exertion upgrades that payment the metropolis implicit aggregate fiscal years.

Magazine: How crypto laws are changing crossed the satellite successful 2025