New York City Comptroller Rejects Mayor Adams’ Bitcoin Bond Proposal

Highlights:

• Comptroller Lander rejects Bitcoin-backed bonds, citing legal risks and financial instability for NYC.
• Mayor Eric Adams pushes the “Bitbond” plan to attract crypto investments despite tax and regulatory hurdles.
• Adams also plans to create a digital assets council aiming to boost jobs and make NYC crypto capital.

In a statement released on May 29, New York City Comptroller Brad Lander, who jointly oversees the city’s debt issuance with the Mayor’s Office of Management and Budget, firmly rejected Mayor Eric Adams’s proposal to issue municipal bonds backed by Bitcoin (BTC). He called the idea unclear in legal terms and risky for the city’s finances.

Lander said he would not permit New York City to issue any crypto-linked debt during his time in office. He emphasized that cryptocurrencies are too unstable to fund the city’s infrastructure, housing projects, or schools. “Proposing that New York City should open its capital planning to crypto could expose our city to new risks and erode bond buyers’ trust in our city,” Lander added.

New York City Comptroller Brad Lander opposed Mayor Eric Adams’s proposed Bitcoin-backed municipal bond (Bitbond) plan, calling the idea “legally dubious and fiscally irresponsible.” He noted that under U.S. tax law, municipal bonds cannot be used to purchase cryptocurrencies or…

— Wu Blockchain (@WuBlockchain) May 30, 2025

Adams Proposes Bitcoin-Backed Municipal Bond Amid Election Challenge

Bloomberg reports that Brad Lander, a Democrat, is considering running against Adams in the upcoming November election. Meanwhile, Adams is running for reelection as an independent. At the Bitcoin 2025 conference in Las Vegas on May 28, Mayor Adams announced his intention to create a municipal bond backed by Bitcoin, which he called “Bitbond.” Addressing the audience, he stated, “I believe we need to have a Bitbond, and I am going to push and fight to get a Bitbond in New York so you can do those same bond investments in New York City.” 

BREAKING: NYC Mayor Eric Adams plans to issue Bit Bond for New York. #Bitcoin pic.twitter.com/loESV4UJYf

— Bitcoin Magazine (@BitcoinMagazine) May 28, 2025

U.S. tax rules don’t allow cities to use municipal bonds to buy crypto or earn profits beyond approved interest rates. On top of that, New York’s BitLicense law makes crypto projects harder and more expensive to manage. The BitLicense requires crypto businesses to get state approval. It includes strict rules like background checks, anti-money laundering policies, audits, and detailed reporting. Critics say it’s costly and slows innovation. At the conference, Adams again called for the removal of New York’s BitLicense rules. Also, there are no clear federal rules yet for bonds backed by digital assets.

Mayor Adams is focusing more on crypto for his re-election campaign. He is following a plan similar to Donald Trump’s from last year. In his campaign, Trump promised to make the U.S. the “crypto capital of the world.” After winning, he took steps like creating a digital asset task force with an executive order. He also held the first White House crypto summit in March with leading industry leaders.

NYC Mayor to Launch Digital Assets Council

Moreover, at the New York City Crypto Summit on May 20, Mayor Eric Adams announced a new digital assets advisory council. He said the council will help bring investment and jobs to the city. Adams wants New York to become the world’s “crypto capital.” He did not give many details but said the council’s chair and main policy ideas will be shared soon.

We're taking the next step in becoming the Crypto Capitol of the WORLD, hosting our city's first-ever Crypto and Digital Assets Summit! Join us LIVE as we get started: https://t.co/iwO6ThkaSB

— Mayor Eric Adams (@NYCMayor) May 20, 2025