NYC Comptroller Blocks Mayor Adams’s Bitcoin Bond Proposal

Comptroller Brad Lander rejected Mayor Eric Adams’s “Bitbond” proposal, aimed to introduce Bitcoin-backed municipal bonds, on June 1, 2025, citing financial and legal issues in New York City.

The rejection emphasizes complications in integrating cryptocurrencies into public finance, impacting market confidence while maintaining traditional fiscal approaches.

NYC Comptroller Blocks Bitcoin Initiative

Mayor Eric Adams proposed a Bitcoin-backed municipal bond initiative called “Bitbond” to spur innovation in New York City. At a recent conference, he highlighted the potential of cryptocurrency in attracting investments.

NYC Comptroller Brad Lander strongly opposed Adams’s proposal, stating that the plan was “[legally dubious and fiscally irresponsible](https://coincentral.com/bit-bond-breakdown-nycs-crypto-bond-plan-meets-regulatory-resistance/).” Lander’s objection effectively ensured that the city will not proceed with the initiative.

“New York City will not be issuing any Bitcoin-backed bonds on my watch […] Cryptocurrencies are not sufficiently stable to finance our City’s infrastructure, affordable housing, 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.” —Brad Lander, NYC Comptroller

Traditional Finance Hesitant on Crypto Bonds

The proposal’s rejection points to significant hurdles in traditional financial environments adopting cryptocurrency-backed instruments. Key investment players remain cautious, anticipating regulatory compliances.

The decision reflects broader hesitancy toward high-risk, crypto-based financial strategies in government infrastructure, echoing concerns on tax compliance and investor risk exposure.

Bitcoin Bonds Face Global Skepticism

The U.S. has no precedent for Bitcoin-backed municipal bonds, but the global market has seen similar skepticism. Notably, El Salvador’s Volcano Bond faced sluggish adoption and regulatory hurdles.

Expectations suggest that integrating cryptocurrencies into government finance will continue facing legal and operational obstacles, hindering widespread acceptance without clear regulatory frameworks.