Elected Mayor Eric Adams Convinced To Create Crypto-Friendly Rules In NYC

JAKARTA – The election of Eric Adams, an avid bitcoin fan, as the new Mayor of New York City last November was a victory for the crypto world. The new mayor is believed to be turning the busiest city in the US into a hub for digital currency and blockchain development.

John Wu, President of Ava Labs, believes Adams after being elected mayor will do something for crypto. Wu also said the election of Adams, a bitcoin enthusiast who has pledged to turn the Big Apple, into a crypto hub, played a "big role" in his decision to set up a permanent office in New York City in November.

"Knowing that we have a friendly administration, especially in the New York City area, will help our company tremendously," said Wu, corporate president of Ava Labs.

Adams was sworn in this January and has a lot of work to do to make New York as welcoming as any other would-be crypto hub. New York state has strict regulations for crypto companies, including expensive licensing requirements, and the state attorney general has cracked down on several companies in the sector.

However, Wu and other cryptocurrency executives say the mayor's friendly attitude could attract digital asset start-ups looking to assert their legitimacy alongside traditional Wall Street firms and to tap into the financial center's talent pool and investor base.

Chainalysis, a cryptocurrency data platform, is also doubling down in New York City in 2021, signing a lease for an office space in Manhattan that will accommodate up to 200 staff, last August.

"The new mayor's support for the industry reinforces my belief that New York is the best place for Chainalysis's headquarters," Michael Gronager, the chief executive and co-founder of Chainalysis, told Reuters in a statement.

"We plan to leverage the city's deep talent for our next phase of growth," he added.

As the digital asset industry is booming and the value of cryptocurrencies is soaring - exceeding $3 trillion in November, many jurisdictions want their share of the action.

During his campaign, Adams expressed interest in developing a digital wallet for city employees and public beneficiaries. After his election, he promised to take his first three salaries in bitcoin and suggested that schools in New York teach courses on cryptocurrencies and blockchain technology.

"NYC will become the center of the cryptocurrency industry...Just you wait!" he tweeted last November.

Adams has not proposed specific policies that would incentivize crypto companies to set up offices in New York, unlike other cities like Miami and Austin whose marketing has highlighted low energy costs and competitive tax rates.

The mayor's office did not respond to requests for comment, but Adams said he hoped his crypto-friendly stance would attract more tech talent to the city, and many executives believe it will.

“I think it's a very effective signaling tool to … say, 'OK, we recognize that this industry can benefit everyone,'” said Zach Dexter, chief executive of FTX US Derivatives, a Miami-based crypto derivatives exchange.

It's still unclear whether Adams can work from City Hall to reshape state regulations that have been denounced by the virtual currency industry as too strict and expensive.