A proposal by New York City Mayor Eric Adams to issue municipal bonds backed by Bitcoin has hit a roadblock, as Comptroller Brad Lander firmly opposed the move.
The announcement came on May 29, with Lander citing concerns about financial risk and investor confidence.
Comptroller Shuts Down Bitbond Vision
Lander declared that while he holds office, New York City will not issue Bitcoin-tied debt instruments.
He warned that cryptocurrencies are not stable enough to finance the city’s key initiatives.
“Cryptocurrencies are not sufficiently stable to finance our City’s infrastructure, affordable housing, or schools,” Lander stated.
He added that the proposed Bitbond could “expose the city to new risks and erode bond buyers’ trust.”
Mayor Adams Champions Crypto Despite Pushback
Adams unveiled the Bitbond concept on May 28 during the Bitcoin 2025 conference in Las Vegas.
He also advocated for the repeal of New York State’s BitLicense program.
“I believe we need to have a Bitbond, and I am going to push and fight to get a Bitbond in New York,” Adams said during the event.
The Mayor’s idea echoes broader ambitions to cement New York’s role in the crypto economy.
Proposed Structure Offers Dual Returns
A March policy brief from the Bitcoin Policy Institute outlined how a Bitbond might function.
Investors would earn a 1% annual interest rate over a decade.
Upon maturity, they would receive a share of any Bitcoin price gains.
The proposed breakdown allocates 90% of funds for city spending and 10% for a Bitcoin reserve.
Lander’s office presented a simulation that models investor returns.
According to the document, if Bitcoin gains do not exceed a 4.5% annual return, investors collect all appreciation.
Beyond that threshold, profits would be split evenly between investors and the city.
Legal and Operational Hurdles Remain
Despite Adams’ enthusiasm, many uncertainties cloud the proposal.
Lander emphasized that city bonds are typically issued for long-term capital projects like infrastructure upgrades.
Under Directive 10, other uses are restricted to narrowly defined cases.
Given the volatility of digital assets and existing regulatory frameworks, many see the Bitbond proposal as risky and impractical.
Lander, a Democrat, may also be positioning against Adams, who is seeking re-election as an independent.
The disagreement over crypto-backed bonds may become a central issue in the city’s political landscape in the months ahead.