{"id":51850,"date":"2024-10-20T01:00:00","date_gmt":"2024-10-20T01:00:00","guid":{"rendered":"https:\/\/cointelegraph.com\/news\/nyc-mayor-eric-adams-crypto-indictment"},"modified":"2024-10-20T08:49:52","modified_gmt":"2024-10-20T08:49:52","slug":"indicted-nyc-mayor-leaves-questionable-crypto-legacy-as-controversy-mounts","status":"publish","type":"post","link":"https:\/\/emilynews.com\/blog\/?p=51850","title":{"rendered":"Indicted NYC mayor leaves questionable crypto legacy as controversy mounts"},"content":{"rendered":"
Three years before cryptocurrency became a talking point in the United States presidential election for the first time, a different crypto-focused race was brewing in New York City to determine who would replace outgoing Mayor Bill DeBlasio.<\/p>\n
<\/p>\n
Democrat Eric Adams was squaring off against Republican Curtis Sliwa, and both were campaigning on the promise of being pro-crypto mayors. Adams had recently defeated Andrew Yang, another crypto proponent, in the Democratic Party primary.<\/p>\n
On the campaign trail, Adams promised to make NYC the \u201ccenter of Bitcoins.\u201d He was elected mayor in November 2021, after which he continued to pledge the city would become \u201cthe center of the cryptocurrency industry\u201d and argued cryptocurrency should be taught in schools.<\/p>\n
Nearly three years after he was elected mayor, Adams was indicted by the Federal Bureau of Investigation and charged with \u201cbribery, campaign finance, and conspiracy offenses\u201d related to alleged criminal activities that spanned nearly a decade. Seven senior officials have resigned from his administration, and several others linked to his administration have been charged or are reportedly under investigation.<\/p>\n
With his political career now at risk, whether Adams left a positive impact on crypto in NYC depends on who you ask. His administration defended his record, but those on the ground say nothing impactful has actually materialized. At the same time, many in the crypto community are increasingly concerned about the industry\u2019s association with controversial figures like Adams.<\/p>\n
Eric Adams\u2019 record on crypto<\/h2>\n
Fresh off his election win, Adams entered into a friendly rivalry with crypto-friendly Miami Mayor Francis Suarez, who had pledged to receive one of his paychecks 100% in Bitcoin (BTC). In response, Adams said he would take his first three paychecks in crypto \u2014 a promise he later fulfilled with the help of Coinbase.<\/p>\n
\u2014 Mayor Eric Adams (@NYCMayor) January 21, 2022<\/p><\/blockquote>\n
NYC elected officials are required to complete a financial disclosure form every year that asks, among other questions, whether they own any securities. In his 2023 disclosure, Adams indicated he holds between $5,000 and $54,999.99 worth of Bitcoin \u2014 so it appears he has continued to hodl from his first paychecks.<\/p>\nEric Adams\u2019 reported Bitcoin holdings as of the end of 2023. Source: NYC Conflicts of Interest Board<\/p>\n<\/figcaption><\/figure>\n
Adams also continued to publicly express pro-crypto stances after taking office. In June 2022, he decried a two-year moratorium on new non-renewable-energy proof-of-work mining operations in New York passed by the State Senate, reportedly asking the governor to veto the bill. Six months later, amid the depths of the bear market, Adams reiterated his support for crypto innovation despite the downturn in prices.<\/p>\n
In February 2023, the New York City Council\u2019s Committee on Technology held an oversight hearing to discuss blockchain, cryptocurrency and other innovative digital tools. In attendance was the city\u2019s chief technology officer, Matthew Fraser, who was appointed to his position by Adams.<\/p>\n
Fraser outlined several initiatives the administration was working on, including launching education efforts, helping to organize conferences and events, and developing an official digital wallet for city workers and recipients of public benefits that would also accept cryptocurrencies. At the time of writing, it is unclear the status of these projects and if there is a timeline for their rollout.<\/p>\n
A representative for the city\u2019s Office of Technology and Innovation (OTI) told Cointelegraph that the agency remains \u201ccommitted to responsibly deploying emerging technologies to improve service delivery, optimize city agencies and keep New Yorkers safe.\u201d<\/p>\n
\u201cWe will continue to assess both the practical requirements and risks of blockchain applications in the public sector.\u201d<\/p><\/blockquote>\n
The representative pointed to the OTI\u2019s 2024 hiring of a digital assets and blockchain policy adviser as an example of its continued efforts. According to an expired job listing, the adviser\u2019s primary role is to \u201csupport defining and implementing NYC\u2019s Digital Asset strategy.\u201d<\/p>\n
Related: <\/strong><\/em>Crypto City: Guide to New York<\/strong><\/em>\u00a0<\/strong><\/em><\/p>\n
Adams was again asked about his commitment to Bitcoin during a July 2024 interview on the local TV station FOX5\u2019s The 5 O\u2019clock News program. He told the anchors that in addition to Bitcoin, \u201cwe should look at other forms of cryptocurrency as well as others. Cashless wallets.\u201d<\/p>\n
\u201cThere\u2019s so much we can do. We should not be afraid of this new form of paying for goods and services. We should embrace it.\u201d<\/p><\/blockquote>\n
Is NYC now a Bitcoin city?<\/h2>\n
While the OTI defended the Adams administration\u2019s record on crypto, not everyone believes he has had a tangible impact on the ground. As the OTI pointed out, the city prioritizes \u201creasonable\u201d deployments that keep New Yorkers safe.<\/p>\n
\u201cThis means carefully evaluating these technologies so that we\u2019re providing real benefits to New Yorkers \u2014 rather than merely chasing trends.\u201d What is considered reasonable will vary widely from person to person.<\/p>\n
Thomas Pacchia, founder of the NYC-based Bitcoin bar PubKey, told Cointelegraph that \u201cnothing that I can notice\u201d has changed since Adams took over. \u201cIf there were specific programs, it never really came across my desk at PubKey or any of the other stuff that I\u2019ve done.\u201d<\/p>\n
PubKey recently made headlines after Republican presidential candidate Donald Trump stopped by and paid for a burger using the Bitcoin Lightning Network. The bar regularly hosts politicians, both Republican and Democrat, who come to learn about Bitcoin and blockchain or to participate in events promoting pro-crypto policies. However, according to Pacchia:<\/p>\n
\u201cWe never heard anything from his office, from the mayor\u2019s office, which I think sort of speaks volumes.\u201d<\/p><\/blockquote>\n
Part of the difficulty faced in the city is that regardless of how crypto-friendly any mayoral administration may be, the city is still beholden to the state \u2014 and New York state has arguably the country\u2019s strictest regulators when it comes to crypto.<\/p>\nDonald Trump (center) at PubKey alongside Thomas Pacchia (right) Source: <\/em>PubKey<\/em><\/p>\n<\/figcaption><\/figure>\n
The Office of the Attorney General has pursued cases against Gemini, KuCoin and Tether, while the Department of Financial Services requires companies wanting to offer digital asset services to apply for and receive a BitLicense \u2014 a complex and expensive licensing process.<\/p>\n
New York\u2019s BitLicense regime has been incredibly unpopular among crypto businesses and entrepreneurs and is a constant source of complaints. According to Pacchia, it\u2019s \u201cpreventing Bitcoin businesses from even considering coming to New York state.\u201d<\/p>\n
\u201cIt\u2019s unfortunate anytime you see a term of service or something like that to have New York state listed alongside North Korea and Iran and other sanctioned countries \u2014 do not use this if you\u2019re based in New York state.\u201d<\/p><\/blockquote>\n
Julie Samuels, president and CEO of Tech:NYC \u2014 a nonprofit advocacy group pushing for tech-friendly policies \u2014 told Cointelegraph, \u201cNew York\u2019s strict licensing structure for virtual currency businesses is meant, in part, to boost consumer trust. In concept, this could actually be a huge boost for the crypto scene here, as New York is the first state to take this kind of action to set out clear rules of the road for companies to follow.\u201d<\/p>\n
However, \u201cThe protracted timeframe for securing a license, and the inconsistent accessibility to staff at the Department of Financial Services for potential license applicants, has clearly slowed the pace of growth in the sector and limited the economic impact crypto companies can have for the state.\u201d<\/p>\n
The solution to make NYC truly a crypto-friendly city is very straightforward, according to Pacchia: \u201cThrow out the BitLicense.\u201d He acknowledged that Adams alone doesn\u2019t have this power, \u201cbut being the mayor of New York, that\u2019s a pretty big podium to start to make progress with common sense and practical pieces of regulation.\u201d<\/p>\n
The future of Adams\u2019 pro-crypto policies if he leaves office<\/h2>\n
Given Mayor Adams\u2019 legal predicament, what will come next for him is unclear. He has so far refused calls to resign and said he would fight the charges against him \u201cwith every ounce of my strength and spirit.\u201d On Oct. 9, he reiterated that he had no plans to resign and would seek reelection in 2025. He faces up to 45 years in prison if found guilty.<\/p>\n
It\u2019s possible that Adams could be forced out of office by the state\u2019s governor, Kathy Hochul, but she has so far resisted calls to do so. He could also be removed by a special \u201ccommittee on mayoral inability.\u201d If he is removed from office or does decide to resign, the city\u2019s public advocate, Jumaane Williams, will assume power and a special election will be held to determine a new mayor.<\/p>\n
Williams could not remove any of Adams\u2019 appointees \u2014 including pro-crypto chief technology officer Fraser \u2014 so it\u2019s unlikely any of the city\u2019s blockchain initiatives would be canceled in the short term. But whoever replaces Adams would have the power to ramp up, wind down or leave the initiatives alone.<\/p>\n
Either way, Adams would face a seriously uphill battle in 2025 during the next election, meaning his policies could eventually go out the window, regardless.<\/p>\n
The promises and risks of politicians<\/h2>\n
Adams is not the only well-known pro-crypto American politician facing various criminal indictments. Trump, the most famous of the bunch, is currently embroiled in four separate legal cases.<\/p>\n
Some in the crypto community are beginning to worry that crypto\u2019s growing association with and support of controversial political figures is a net negative for the industry. Ethereum co-founder Vitalik Buterin recently ruffled some feathers when he said people should not be single-issue voters for crypto, arguing they should consider a candidate\u2019s broader stance on other issues.<\/p>\n
Two weeks later, National Security Agency whistleblower Edward Snowden echoed this sentiment, telling conference-goers at Bitcoin 2024 that they should \u201ccast a vote, but don\u2019t join a cult.\u201d<\/p>\n
So, what can be learned from the example of Mayor Adams? Perhaps one lesson is that electing a pro-crypto politician can, in fact, result in the implementation of at least some pro-crypto policies, though it\u2019s certainly never a guarantee that a politician will follow through on a specific campaign promise.<\/p>\n
On the other hand, any one person is typically limited in what they can do on their own. Even the president must turn to Congress in order to accomplish many of the actions they wish to take.<\/p>\n
Magazine: <\/strong><\/em>Bitcoiners are \u2018all in\u2019 on Trump since Bitcoin \u201924, but it\u2019s getting risky<\/strong><\/em><\/p>\n
Adams is also a reminder that, regardless of how pro-crypto an elected official\u2019s policies are, they also bring any baggage they may have with them into office, and their other unrelated leadership decisions may be deeply unpopular or controversial.<\/p>\n
A December 2023 Quinnipiac University poll found that Adams was the most unpopular NYC mayor since polling began in 1996, while a more recent Marist poll from Oct. 1 revealed that 69% of registered voters thought he should resign.<\/p>\n
However, blockchains like Bitcoin are intentionally built so that no single mayor or even president can ultimately direct their future. So, people can perhaps take some comfort in the fact that whatever politicians and elected officials do, whether they are supportive of the space or not \u2014 and whether they are loved or hated \u2014 crypto itself will continue to chug on just as it always has.<\/p>\n
Check other news for today<\/span> and Please stand by..<\/p>\n
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