New York City Mayor Eric Adams made headlines at Bitcoin 2025 by proposing the launch of “BitBonds”—municipal bonds backed by Bitcoin. The idea, pitched as a bold step to position NYC at the forefront of the crypto revolution, quickly ran into a hard reality: city officials and regulatory hurdles make such a move highly unlikely in the near future .
What Are BitBonds?
BitBonds are a new type of municipal bond where a portion of the funds raised would be used to purchase Bitcoin for a city reserve, while the rest would go toward traditional government spending. The concept is inspired by similar proposals at the federal level, where 90% of proceeds fund government projects and 10% are allocated to a strategic Bitcoin reserve .
Mayor Adams’ Crypto Ambitions
Since taking office, Mayor Adams has repeatedly stated his intention to make New York City a global crypto hub. At Bitcoin 2025, he not only called for the end of the restrictive BitLicense regime but also pitched BitBonds as a way to modernize the city’s financial toolkit and attract crypto businesses back to NYC . However, these ambitions have yet to translate into concrete policy changes or industry growth directly tied to his administration.
Comptroller’s Firm Rejection
NYC Comptroller Brad Lander responded swiftly and unequivocally: “New York City will not be issuing any Bitcoin-backed bonds on my watch.” Lander cited several reasons for his opposition:
• Financial Stability: Cryptocurrencies are too volatile to underpin critical city investments like infrastructure, affordable housing, or schools.
• Legal Barriers: Federal tax laws likely prohibit using tax-exempt municipal bonds to acquire cryptocurrency or profit from crypto gains .
• Operational Gaps: The city lacks mechanisms to accept, hold, or convert Bitcoin for municipal use, making the logistics of BitBonds unworkable .
• Risk to Trust: Introducing crypto-backed bonds could erode investor confidence in NYC’s traditional bond market .
Lander’s office also noted that the mayor’s team has not formally engaged with the comptroller’s office on the BitBond idea, suggesting the proposal is more of a public relations move than a serious policy initiative .
Why BitBonds Are Unlikely in NYC
New York City’s bond issuance is tightly regulated, with most funds earmarked for capital assets—long-term investments like infrastructure projects. The city can only finance other purposes in very limited circumstances, and current laws do not accommodate the use of crypto for these purposes . Additionally, the city’s restrictive BitLicense framework continues to make New York one of the toughest places in the U.S. for crypto innovation .
The Bottom Line
While Mayor Adams’ BitBond proposal generated buzz, the combination of legal, operational, and political barriers means New Yorkers shouldn’t expect to see Bitcoin-backed municipal bonds anytime soon. For now, NYC’s crypto ambitions remain more talk than action, with city officials prioritizing financial stability and regulatory compliance over experimental financial instruments .
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NYC’s BitBond proposal stalls as city officials cite legal, financial, and operational barriers. Crypto-backed bonds remain off the table for now.
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NYC’s Bold BitBond Plan Blocked: Crypto Bonds Face Major Hurdles
